The Federal Reserve hoped that the peak of inflation would be reached this winter in the United States.
However, the surge in commodity prices caused by the invasion of Ukraine, which ranges from oil to wheat via potash and palladium, postpones this scenario for several months.
Suddenly, the increase in the key rate by the Fed made necessary by the highest inflation for forty years looks even more delicate.
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Inflation increases pressure on the Fed
Before a Congressional committee, Jerome Powell confirmed on Wednesday the Fed's intention to raise its key rate from March 16, set at zero since March 2020. The head of the central bank, however, admits that
“the short-term effects on the US economy from the invasion of Ukraine, the ongoing war, sanctions and future events remain highly uncertain.
The US economy is rebounding from the end of the pandemic.
The consumer is eager to spend, while full employment and a shortage...
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