Interest rates have not stopped climbing in the United States

This time, the markets no longer have any doubts about the intentions of the US Federal Reserve. In a highly anticipated speech at the central bankers’ symposium in Jackson Hole, Wyoming, its president, Jerome Powellexplicitly clarified that the key rate currently from 2.25 to 2.50% “was not at a level where you stop, where you take a break”.

Whereas inflation is at a 40-year high, and growth has been slightly negative since the start of the year, it prepares Americans for future interest rate hikes that will result in “very likely by some cooling of conditions in the labor market and by some inconvenience to households… These are unfortunately the costs to be paid in reducing inflation, for failure in this task of restoring price stability would cause ills much bigger.”

Accused of having waited too long before abandoning its zero rate policy, while inflation…