The struggle of the Federal Reserve (Fed) Against inflation is threatened by growing pessimism about its ability to keep consumer prices under control, said a senior US central bank official on Thursday.
In a speech on Thursday in the state of Virginia, the president of the Fed cell in Kansas, Jeff Schmid, said he reduced his initial optimism that inflation would continue to fall into the goal of the bank in the long term to locate it in 2% per year.
“I have become more cautious“, said Schmidwho is a member with the right to vote of the Fed Rate Fixing Committee.
Schmid considered that there is a “strong ascending movement”In some indicators of inflation expectations in recent months.
In recent times the Fed He has been fighting inflation first by raising its reference interest rate and then keeping them high to cool the demand in the US economy.
Recently, the Fed reduced the reference rates at a percentage point bringing them to a range between 4.25% and 4.50%. Subsequently, he announced that he would decelerate the rhythm of the cuts in the future.
Source: Gestion
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