The Federal Reserve (fed) of the United States raised its benchmark interest rates for the first time since 2018, to fight the inflationwhich reached a 40-year high in the United States.
This first rate increase was moderate, by a quarter of a percentage point, to take them to a range of 0.25% to 0.50%after inflation marked 7.9% at 12 months last February.
The majority of the members of the monetary committee of the fed they expect rates of 1.75% at the end of 2022.
Indeed, Jerome Powellpresident of the fedopened this Monday, March 21, the door to increases in interest rates more aggressive than those proposed until now, in case it is appropriate to combat the high inflation that the country is experiencing.
“If we conclude that it is appropriate to act more aggressively by increasing guideline rates by more than 25 basis points in a meeting or several meetings (ndlr: monetary policy), we will do so,” said Jerome Powell during the annual conference of the National Association for Business Economics (NABE).
Those responsible for the fed they also said they expect to start reducing their US sovereign debt portfolio in the near future.
In that line, Powell He reiterated that, even with the increase in energy prices due to the conflict in Ukraine, “the economy is today very strong and well positioned to manage a tighter monetary policy.”
Source: Larepublica
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