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US to work hard to tame inflation
The US authorities are once again worried about inflation. The main goal is to keep it in check so that prices do not skyrocket. Notably, the Federal Reserve is managing this well. The regulator has noted modest progress in reducing inflation.
According to Fed Chair Jerome Powell, the modest progress on inflation is encouraging. He believes that more positive data will strengthen the Fed's confidence that the rate of price growth is moving towards the target of 2%. However, the Federal Open Market Committee (FOMC) does not find it advisable to lower the key interest rate until there is a clear trend in falling inflation, Powell emphasized.
Fed officials believe that premature easing of monetary policy could freeze or worsen current progress. At the same time, the Fed Chair noted that delayed or insufficient easing would negatively affect economic activity and the state of the labor market in the United States.
Previously, Powell acknowledged the impossibility of further borrowing and criticized the increase in the US national debt. “The US federal government’s on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy. So, it is unsustainable. I don’t think that’s at all controversial,” Powell said.
Published 15 July 2024
© InstaFintech Group
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© InstaFintech Group
