According to a statement from the Federal Reserve (Fed) this Wednesday (20), recent indicators “point to modest growth in spending and production”.
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The North American central bank also stated that job growth in the country has been “robust” in recent months, with the unemployment rate “remaining low”.
On the other hand, inflation has remained at very high levels.
War in Ukraine
The Fed highlights the economic and humanitarian impact of war in Ukraine and says that it “and related events” such as sanctions against Russia, create “additional pressure on inflation and are weighing on global economic activity”. The Fed command says it is “especially attentive to the risks to inflation”.
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Monetary policy
The Fed anticipates that ongoing interest rate hikes “are appropriate”. Furthermore, it says that the process of reducing the balance sheet will continue, as already described in the plan released in May. “The Committee is strongly withpromeneeded to return inflation to its target of 2%”, he highlights.
- Also this Wednesday, the Fed raised interest rates by 0,75% for the third time in a rowsystem. (UOL)
The Fed says that to assess the appropriate monetary policy stance, it will continue to monitor information from the economic outlook. The US Central Bank stands ready to make adjustments to its policy, as appropriate, if risks arise that hinder the pursuit of goals. The Fed says it will take into account a range of information, including public health, labor market conditions, inflationary pressures and inflation expectations, in addition to the financial and international framework.
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