The Federal Reserve intends to reduce the frequency of interest rate hikes

The US Federal Reserve has announced that it is “appropriate” to slow down the rate of increase in the key interest rate in the near future.

Federal Reserve Vice Chairman Lyle Brainard pointed out Monday in an interview with Bloomberg that in light of record inflation levels in decades, the Federal Reserve still has “extra work” to raise interest rates and keep prices down. the same time. .

She said: “I think it might be appropriate that we move to increase (the interest rate) at lower rates soon, but I think it’s important that we emphasize that … we have more work ahead of us.”

And she believed that the interest rate hike should be “more targeted” and data-driven to bring down inflation.

It should be noted that the US Federal Reserve raised the main interest rate this year 6 times, the last four times by 75 basis points, bringing the interest rate to 3.75-4%.

The Fed is aiming to bring inflation down to 2%, but that’s still about 3 times that.

Data released last week suggests that consumer prices recorded the lowest increase last week since January last year, and the US authorities hope that this may indicate the imminent start of price declines.

Source: agencies

Related Stories

Leave a Reply