Jerome Powell, president of the Federal Reserve, believes that monetary policy “is not too tight” and that is why they will be more restrictive.
Join the La República WhatsApp channel
- Price of the dollar today in Peru: what is the exchange rate for this Thursday, October 19?
- Refund to 1.2 million Fonavistas begins in December
The United States Federal Reserve (Fed) estimates that interest rates will remain high for longer, since inflation does not let up and the path to bring it to 2% “requires a sufficiently restrictive position,” according to its president, Jerome Powell.
It is worth mentioning that inflation in the North American giant stagnated at 3.7% at the end of September —and in June 2022 it reached a peak of 9.1%—; and in parallel, the interest rate fluctuates between 5.25% and 5.5%, its highest level since 2001.
Powell noted that at the Fed they evaluate what the “neutral” rate is for the long term, based on models, but also by observing the economy and asking how rates are affecting it.
“The evidence that we clearly see is that the economy is managing much higher rates, at least for now, without difficulty, which may indicate to us that the neutral rate has risen or that we have not had rates high enough over time.” enough,” he added.
These Fed policies serve as a reference for the decisions made by the Central Reserve Bank of Peru, which in its last report cut its rate to 7.25%, but did not imply a cycle of successive reductions.
With information from EFE.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
