Jerome Powell, Chairman of the United States Federal Reserve
USA, the Fed continues the fight against inflation which remains high, the squeeze continues
And it will towards a rate hikeWhy “inflation remains unacceptably high“. That’s how much he has supported most of Federal Reserve officials, during the meeting three weeks ago, where it was established that is well above the 2% target and what is needed continue with rate hikes.
As it reads in the minutes of the meeting of 31 January-1 February: “Almost all” members of the Fomc “they agreed on a 25 basis point increase the target range for the federal funds rate” so as to balance the risks of doing too much or too little to fight inflation, although some have warned that slowing or halting hikes prematurely could be risky .
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The statement explains: “A certain number of participants ha observed that a policy stance that has proved insufficiently restrictive could halt recent progress in moderating inflationary pressures.” Fed officials they have approved unanimously therate increase Fed funds benchmark by a quarter of a percentage point to a range of 4.5% to 4.75% on 1 February. The increase followed six consecutive hikes, including one by half a percentage point in December.
The minutes of the meeting report that “almost all the participants agreed that it was appropriate” raise rates by a quarter of a point, or 25 basis points. Many of these officials “observed that a further slowdown in the pace of rate hikes would allow them to better assess the progress of the economy … as they determine the extent of future tightening of monetary policy”, it continues. However, some participants were in favor or would even agree to a move wider by half a point: “Participants in favor of a 50 basis point hike noted that a larger hike would bring the range closer to the levels of a sufficiently tight stance more quickly.” “.
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