Inflation increases pressure on the Fed

The central bank of the United States is expected to attempt this Wednesday to correct a monetary policy error.

The Fed thus hopes to avoid a trap next year which would precipitate a recession.

The trap in question, feared by the markets, would be the obligation to have to raise its key rate too quickly - currently still zero - in order to counter a lasting anchoring of inflation at more than 2%.

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In recent weeks, in response to inflation that has reached its highest level in nearly forty years, members of the Federal Reserve's monetary committee have hinted that they will announce this Wednesday evening an acceleration of the exit from the '"Quantitative easing" (the

or QE, in English).

This policy of massive buyback of public debt by the Fed, in place since March 2020, aimed to fight deflation by manipulating long-term interest rates so that they are as low as possible.

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While inflation has soared ...

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