Fed Governor Sees Economy Slowing

There are early indications that the Federal Reserve’s series of six interest rate increases has begun to slow the economy, Fed Governor Edward Gramlich said Wednesday.

Gramlich will be among central bank inflation fighters who meet June 27-28 to decide whether to raise rates for a seventh time since last June. The rate hikes were aimed at cooling the economy to a less-inflationary growth rate.

“There are some signs that things are slowing down,” Gramlich told reporters after an appearance at a housing group’s function in Denver. “It’s early, and we only have a few numbers.”

Gramlich would not comment on what the Fed might do at its June meeting. But asked whether the rate increases have been successful, he said, “There’s a little bit of a slowdown coming. It’s still early, but it looks that way.”