Slower Fed pace of interest rate On Wednesday, it unveiled a smaller increase in benchmark lending rate on Cooling inflation while referring to battle to restrain in costs are not over.
the quarter-Goal rise Takes rate to aim range of 4.50 – 4.75%, the Fed said, adding that “inflation has eased somewhat but remains High “.
Recently, the Federal Reserve raised key interest rate by a whopping 0.75 points several times – But it’s slower pace .in the end of last year with a rate Height of 0.5 percent points.
recent data show This high inflation in The world is bigger economy he on Retreat.
The Federal Reserve has been particularly aggressive in Addressing high inflation – which in times I was higher than it was for contracts – in Recent months, interest rates raised rapidly pace.
Recently, inflation rate in The United States continued to fall – a sign of the first Successes of strict cash policy. In December, consumer prices increased by 6.5% compared to the same month last year. In November, it was rate was 7.1%. was the sixth decline in inflation rate in Row – but still high.
The Chairman of the Federal Reserve was Jerome Powell already made clear in December that he will remain in the course until the task is completed. In December, the Fed predicted that it would raise interest rates to just over 5% this year.
International Monetary Fund (IMF) also compressed in It latest Economic forecasts that central banks should dont let up in they fight against High inflation, despite initial successes. the battle The IMF has not yet won said.
One primary focus for Fed Chairman Powell is likely to remain strong action market in The US unemployment rate has dropped surprisingly at the end of last yearup to 3.5% in December, lowest in Almost three years.
while this good news in itself, if there is a shortage of Workers in key industries, can stimulate upward pressure on the prices. there risk of pay-price spiral. However, wages have recently risen less than expected.
