The president of the Federal Reserve US (Fed), Jerome Powellstated this Friday that the The regulator will continue to keep rates high until inflation is controlled, although it opened the door to a pause in the increases.
“We are prepared to further increase rates if appropriate and intend to keep policy tight until we are confident that inflation is sustainably declining toward our target“he said in a speech at the Jackson Hole (Wyoming) forum.
The president of the Fed remained faithful to the words he gave at the last press conference, in which the agency announced the rise in the official price of money by another 0.25 percentage points in July, up to a range between 5, 25 and 5.5%.
However, in the conclusions of his speech he did open the door for a pause: “In the upcoming meetings we will assess our progress based on the full economic data and the evolution of the outlook and risks. Based on this assessment, we will proceed cautiously in deciding whether to tighten monetary policy further or instead hold the rate,” he said.
The most important data that they will analyze, he explained, is core inflation, which reached a maximum of 5.4% in the US in February 2022 and gradually decreased to 4.3% in July.
“The monthly declines in core inflation in June and July were welcome, but two months of good data is just the start of what it will take to build confidence that inflation is sustainably declining towards our target“, he pointed out.
Source: Larepublica
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