Fed says more rate hike is needed to counter inflation

The March issue of the semi-annual Monetary Policy Report, prepared twice a year by the Fed for the US Congress, has been published.

In a report to be presented to Congress by Fed Chairman Jerome Powell next week, it was stated that financial conditions have become tighter since June last year and are significantly tighter than a year ago.

Pointing out that inflation has slowed since the middle of last year as supply bottlenecks decreased and energy prices fell, it was noted that inflation rate remained well above the 2 percent target of the Federal Open Market Committee (FOMC).

“Fed realizes high inflation poses serious challenges”

“The Committee has increased the target range for the federal funds rate by 3 percentage points since June, to 4.50-4.75%, and is within the target range,” the report said. He stated that he predicts that continued increases will be appropriate.” expression was used.

In the report, it is reminded that the bank slowed down the pace of tightening in December and January meetings in the light of the cumulative tightening in monetary policy and the lagged effect of monetary policy on economic activity and inflation. It was stated that it was predicted that the increase would be appropriate.

Emphasizing that the Fed is aware that high inflation poses serious challenges, the report said, “The Committee is determined to reduce inflation to the 2 percent target.” evaluation was made.

Pointing out that the labor market continues to be extremely tight, it was stated in the report that although the demand for labor was strong, the recovery of the labor force from the epidemic was slow and left a significant labor supply gap compared to the levels expected before the epidemic. The Fed’s report noted that the labor force participation rate is likely to remain well below its pre-pandemic level.

Leave a Comment

Your email address will not be published. Required fields are marked *

kerberos market onion - mgm grand market

sweet bonanza oyna casinoslot
eduburs.com bakırköy escort