WASHINGTON.- This Wednesday, the Federal Reserve (Fed) USA confirmed that you need a more persistent reduction in inflation before considering a decrease in interest rateswhich are currently in a range of 5.25% to 5.5%, their highest level since 2001.
This is clear from the minutes published today about their last meeting, held on March 19 and 20 and in which the members of the Federal Open Market Committee (FOMC) agreed that maintaining the current range would help the goal of inflation being below 2%.
At that meeting, according to the document, its members expressed their uncertainty about the persistence of a high inflation and highlighted that recent data had not increased your confidence in which inflation was falling sustainably to achieve that goal.
Inflation rose in the US in March.
The minutes were published the same day it was announced that the rate of inflation in the United States It rose again this March. This year-on-year increase of three tenths, up to 3.5%, confirmed the Fed’s view that it will not be easy to bend it.
The American president himself, Joe Bidenspoke about this new price increase, recognizing that it could delay the desired rate reduction.
The Fed minutes show that progress in reducing inflation is uneven. Its members said they remained “very attentive” to inflationary risks, but recalled that they had already anticipated some inequality in the monthly inflation data.
The Committee remains confident that the 2% target will be reached in the medium term, but warns that high inflation continues to harm households, especially those who cannot afford basic goods such as food, housing or transport.
In line with what was advanced in March, however, he considered it appropriate to opt for a less restrictive policy at some point in the year if the economy advances as expected, and emphasized the need to analyze in detail the incoming information to see if inflation is approaching. sustainably at the expected percentage.
The president of the US central bank, Jerome Powellpointed out in a recent public event that to lower rates the Fed will not wait to reach 2% if the economy advances as expected, but he also made it clear that he will not be in a hurry to do so.
The regulator’s next meeting will take place between April 30 and May 1.
You might also be interested: “Inflation in the US rose to 3.5% year-on-year in March”
Related news
#Fed #Persistent #reduction #inflation #lowering #interest #rates
2024-05-06 22:48:45