Wednesday, December 07, 2022

US Federal Reserve says it will take time to control inflation

The chairman of the US Federal Reserve (Fed, Central Bank), Jerome Powell said on Wednesday that it would take Inflation occurs in the “time” before interest rates rise, and will signal a cooling of the economy.

In a press conference at the end of the unit’s two-day meeting and after announcing a 0.75 percentage point reference rate hike, the head of the Fed indicated that the organization’s monetary committee was open “to moderate its growth rates from the next meeting”. Is. In December. But he said it is “too premature” to consider a “pause” in the adjustment.

Increase in reference rates by 0.75 points

The US central bank reports that inflation is also at its highest in four decades and the most aggressive rate hikes since then.

This Wednesday, its Monetary Policy Committee approved an increase in official interest rates by 0.75 percentage points to a range of 3.75%-4%, the highest rate since the first half of January 2008.

This is the sixth increase of the year and the fourth consecutive increase of that amount in less than five months. The central bank anticipates that rates will continue to rise, and although this opens the door to the next hike at a slower pace, it also warns that it is possible that the hike will last longer and the value of money will be higher than it has been for now. planning level.

In its statement, the Reserve expects further rate hikes, but adds that “to determine the pace of future growth, the Committee will take into account the cumulative tightening of monetary policy, which is accompanied by monetary policy activity and inflation.” influences, and economic and financial development”.

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