WASHINGTON (WABNEWS).- The U.S. Federal Reserve (Fed) is set to continue hiking rates this year, after raising rates by 0.75 percentage points four times in a row, only raising rates by 0.75 percentage points at its last meeting. The facts are not indicative of future rate hikes. stop doing it.
That’s what some of the members of the Federal Open Market Committee (FOMC) said at their last meeting in December, the Fed announced in the minutes of the meeting released this Wednesday. .RELATED
“Several participants wanted to make clear that the slowdown in the pace of rate hikes does not indicate a weakening of the Committee’s resolve to meet its price stability target or a judgment that inflation is already underway. emphasized the importance of “path,” says the text.
The “undue easing” of financial conditions “caused by the public’s misunderstanding of the Commission’s response” would “complicate the Commission’s efforts to restore price stability,” it added.
The Fed’s goal of curbing inflation
On December 14th, the Fed announced a 0.5 point increase in the official discount rate. This is his seventh since March and remains in his 4.25-4.5% range, the highest level in 15 years since December 2007. The rise came after four consecutive 0.75.
At a press conference following the announcement, Fed Chairman Jerome Powell expected further rate hikes in the future until “monetary policy tightens enough to return to 2% inflation.”
Rate hikes will ultimately affect inflation, according to the Federal Reserve’s projections. The authorities have therefore calculated that inflation will end this year at 5.6% and that prices will gradually decline until reaching the target of 2.1% in 2025, a tenth of the target.
Regulators estimate that the world’s leading economy will end with 0.5% growth in 2022 and a similar rate this 2023. This assumes a three-tenths improvement in forecasts this year, but seven-tenths worse than previous estimates.
Mr. Powell argued that these forecasts do not speak of a recession.