The Fed is ready “without hesitation” to raise rates again if necessary
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The US Federal Reserve System (FRS) will not hesitate to raise rates again if necessary to curb inflation, said the regulator’s chairman, Jerome Powell.
“If further tightening of monetary policy is appropriate, we will not hesitate to do so,” he said (quote by The Hill).
At the same time, Powell emphasized that the Fed is satisfied with the strong indicators of economic growth and the labor market against the backdrop of rate hikes, but there is still a long way to go to a sustained reduction in inflation to the 2% target.
On July 26, the US Federal Reserve raised its key interest rate by 25 bps. p. – from 5-5.25% to 5.25-5.5% per annum, and at the next two meetings left it unchanged. Earlier, the US Department of Labor reported that inflation in the country as of September was 3.7% in annual terms, with a target of 2%. In 2022, prices in the US officially increased by 8%, in 2021 by 4.7%.
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