“Inflation has risen dramatically and will remain high.” This is what Jerome Powell, number one of the Fed, said in the press conference following the publication of the statement by the FOMC, the monetary policy arm of the US Federal Reserve.
The Fed announced that it had left the fed funds target unchanged at the range between zero and 0.25%, however indicating that rates could be raised as early as 2023, after saying in March that it does not see the need. of any monetary tightening at least until 2024.
Powell motivated the “upward pressures on prices, with the resumption of spending”, adding that “there is a possibility that inflationary pressures are persistent”.
For this reason, “if we saw signs of inflation that was persistently moving above the target, we would be ready to adjust the position of monetary policy”.
Powell also said that “household spending is growing at a fast pace”, that “corporate investment is increasing at a solid pace” and that “the factors weighing on employment growth should dampen in the coming months.”
In general, “the indicators relating to economic activity and employment will continue to improve”.