The Zhitong Finance App learned that on Friday, Cleveland Federal Reserve Chairman Meester said that the possibility of raising interest rates by 75 basis points in September was once again put on the agenda.

Speaking at the ECB meeting, Meester said that she expects the Fed to support a 50 basis point rate hike at two meetings in mid-June and late July. She pointed out that at that point, the Federal Reserve can review the appropriate pace of further interest rate hikes according to the situation.

Meester said, “If monthly readings on inflation provide convincing evidence that inflation is declining by the time of the Federal Open Market Committee meeting in September, then the pace of interest rate hikes may slow down, but if inflation does not abate, then it may be necessary to speed up the pace of interest rate hikes.”

As a result, the Federal Reserve is likely to raise interest rates by 75 basis points after the September 20-21 meeting.

Earlier this month, Federal Reserve Chairman Powell said that the Federal Reserve is not actively considering raising interest rates by 75 basis points. However, in an interview with the Market Radio program this Thursday, Powell said that he did not firmly rule out such a drastic interest rate hike. Analysts, on the other hand, believe that Powell ruled out such a sharp interest rate hike, because it raised questions about the Federal Reserve's will to recontrol inflation.

Meester is a voting member of the Federal Reserve Interest Rate Committee and is considered one of the more hawkish regional Federal Reserve chairmen.