2023-07-24 01:05:19
Published on 24.07.2023
Estimated reading time: 1 minute
United States » The time for a break is over for the American central bank (Fed). It should resume this week with rate hikes and proceed with a quarter-point increase, in order to ensure that inflation slows down durably.
Fed officials meet Tuesday and Wednesday. “If I had to bet, I would say they will raise rates by 25 basis points,” or a quarter of a percentage point, Joseph Gagnon, an economist at the Peterson Institute for International Economics (PIIE) and former Fed, told AFP.
On the side of market players, it is also this hypothesis that is almost unanimous, according to the assessment of CME Group. The decision will be announced Wednesday at 2 p.m. (8 p.m. in Switzerland), in a press release which will be followed by a press conference by Fed Chairman Jerome Powell.
Rates were at zero to stimulate the economy during the Covid-19 crisis, until March 2022, when the Fed began raising them in the face of inflation at its highest in more than 40 years. It made ten hikes, before pausing at its last meeting in mid-June, keeping rates in the range of 5.00 to 5.25% in order to take the time to observe the effects of these increases and avoid plunging the economy into recession. TTY
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