The inflation of the EE. UU. it rose by 7% in 2021, the highest figure in 40 years (1982), as reported by the US Bureau of Labor Statistics.
This result has generated greater concern for US President Joe Biden, who promised to stop this inflationary spiral. However, he said that the data reveal that there was progress in the fight against inflation, when comparing monthly figures.
“The report shows that we are making progress, but at the same time we have more work to do, because the price increases are still too high and put pressure on families’ budgets, ”said the president.
Consequences
For the economist of the Pacific Business School Melvin Escudero, it was to be expected that the United States will close 2021 with high inflation, as this has happened all over the world. However, he said that this result is also important because it gives an idea of the actions that the Federal Reserve (FED) could take with its monetary policy.
“In any case, they will begin to raise interest rates and reduce their interventions and injection of liquidity through the purchase of bonds,” he explained.
In this sense, he said that these decisions would have a global impact, such as the strengthening of the dollar, and an impact on the bond and fixed income market, as it would be affecting their profitability. As an example, he pointed out that the portfolio of pension funds would be impacted.
Data
Evolution. Energy prices rose 29.3% and food prices 6.3%, according to the consumer price index.
Answer. Fed Chairman Jerome Powell noted that if inflationary push continues beyond mid-2022, “we will react accordingly.”
.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
