US Federal Reserve (Fed) announced Fourth in a row 0.75 points rate to rise on Wed pointed out that more Increases will be necessary to tame inflation.
The latest three-quarter A percentage point increase takes standard lending rate to 3.75-4.0% highest Since January 2008.
In a statement in conclusion of the two days policy American Central Meeting bank He said more rate Elevations will “be appropriate” to achieve a “sufficiently restricted” level of pressure down Inflation, but will take into account the effect on The economy when making a decision.
The Fed is aggressive rate raise this year So far it has not had a noticeable effect on Prices, but increase risk United State economy You can suffer from stagnation even with a job market remains strong.
The policy- The appointment of the Federal Open Market Committee (FOMC) indicated that more Increases will be required for you down rising Prices but will take into account the effect on The economy when making a decision on The pace of future moves – Opening the door for a smaller execution possibility steps in the coming months.
political pressure
as central bankers walk Tightrope combats inflation while avoiding overturning economy In a recession, politicians are heading up up the pressure on Federal Reserve Officials Amid Growing Concerns of Economic downturn.
Biden faces growing voter frustration over High inflation and signals a “red wave” that may sweep the Republican opposition power in The House of Representatives and the Senate.
Republicans put the blame for Inflation is slower growth directly on Biden, while the president’s Democrats worry about the Federal Reserve moves will lead to me higher The unemployment.
Democratic Senator Sherrod Brown urged the Federal Reserve last month for show stick with it dual official order – of Strengthen maximum Employment and stable prices – and moderation rate walking long distances.
For working Americans who already feel crushed of “Inflation, job losses will only make it worse,” Brown said. in Letter to Powell.
But Powell argued that allowing high inflation to take hold would cause this to happen more Pain on American families and workers.
oanda analyst It’s too late, said Craig Erlam avoid Recession ‘But the Fed was severe clear From start That while a soft landing is the desired and achievable outcome, the primary focus on controlling inflation is.”
