US Federal Reserve: Measures to reduce inflation will be painful

Washington-Sana

The President of the US Federal Reserve, Jerome Powell, announced another hike in the main interest rate in the United States, warning that inflation and measures to curb it will be painful.

"Officials will continue to act aggressively to calm the economy and avoid a repeat of the 1970s and early 1980s," Powell told reporters, referring to the last time inflation got out of control in the United States and drastic measures were required in the midst of a recession to cut inflation. the prices.

Powell justified raising the interest rate by saying that the US central bank is committed to raising interest rates and keeping them high until inflation decreases, warning of the danger of adopting any "easing policy prematurely."

This is the third consecutive increase of 0.75 percentage points by the Federal Open Market Committee, which is charged with setting policy at the Federal Reserve in the context of attempts to reduce inflation, which rose to its highest level in forty years.

The rise in prices is putting pressure on American families and companies, as it has become a political burden on President Joe Biden, who faces the midterm congressional elections early next November, but the contraction of the largest economy in the world will be a more damaging blow to Biden and the credibility of the Federal Reserve.

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