Full impact of Fed hikes still to be seen in real economy, ex-vice chair Blinder says

The full impact of the U.S. Federal Reserve's interest rate hikes that began in March 2022 has still not been completely transmitted to the real economy, a former vice chairman of the central bank said on Friday. The Fed has cumulatively raised its target rate by 525 basis points to 5.25%-5.50% over the last 17 months. "I think there's a lot more to be seen," Alan Blinder, Fed vice chairman between 1994 and 1996, told the Reuters Global Markets Forum (GMF).