U.S. Federal Reserve appears ready to temporarily halt its aggressive monetary tightening agenda, but it is not yet done with the job, the CEO of Standard Chartered bank said on Monday.
"I think the Fed will definitely stop here. But I think they need to see if the inflation numbers are really coming down or not," said Bill Winters
Of particular concern to both central banks in the U.S. and in other countries is still focused on raising wages, which they fear could drive a wage-price spiral, with higher wages raising prices and causing inflation to remain rampant.
To avoid that, policymakers want to see that employment and wage growth cool before ending the climbing cycle entirely, Winters said.
"The fact is, job growth is still quite strong, wage growth is still quite strong. And that's not just in the U.S. it's also happening in Europe and the U.K.
“So, if we can get the normal wage growth cycle back under control, then I think the Fed can stop here. But it is not over yet,” he added.
