The central bank’s latest move put its benchmark short-term rate in a range of 4.5% to 4.75%, its highest level in about 15 years.
The slowdown in inflation suggests that its rate hikes have started to achieve their goal. But measures of inflation are still far above the central bank’s 2% target. The risk is that with some sectors of the economy weakening, ever-higher borrowing costs could tip the economy into a recession later this year.
The Fed’s latest policy statement indicated that the central bank no longer regards COVID-19 as a driver of higher prices. It removed from its statement a reference to the pandemic as a cause of supply shocks that have heightened inflation. It also dropped a reference to “public health” as among the factors it will consider when assessing its next steps.
But recent gauges show that wage growth is slowing. And in December, overall inflation eased to 6.5% in December from a year earlier, down from a four-decade peak of 9.1% in June. The decline has been driven in part by cheaper gas, which has tumbled to $3.50 a gallon, on average, nationwide, from $5 in June.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Gold Price Forecast: XAU/USD bulls could emerge ahead of Federal ReserveThe Gold price has drifted lower for a third day and is testing structure as we head towards key events this week, including the Federal Reserve and t
Leer más »
USD/JPY Price Analysis: Bears eye a test of 130.00 pre Federal ReserveUSD/JPY is under pressure in Tokyo but the bulls are moving in from a support area as the following charts will illustrate. Meanwhile, the US Dollar r
Leer más »
State of Our Union: The Federal Reserve cannot save the economy from Biden's White HouseOn its face, the economy seems to be OK again. After an unprecedented glut of spending and a resulting inflation crisis, employment has kept up while investors downgrade their risk of recession.
Leer más »
Stock futures tick lower as traders await the Federal Reserve's latest rate hike decisionHere's how stocks are trading ahead of the Federal Reserve's Wednesday meeting.
Leer más »
Gold Price Forecast: XAU/USD fades rebound ahead of Federal Reserve Interest Rate DecisionGold price (XAU/USD) struggles to extend the previous day’s recovery beyond $1,930-28 as the market braces for the key Federal Reserve (Fed) verdict o
Leer más »
Federal Reserve raises key interest rate 0.25%, signals more hikes likelyWhile there are some signs inflation is decelerating, officials warn that the Fed isn't likely to back off its rate hikes anytime soon.
Leer más »