The Limited Times

Now you can see non-English news...

Fed begins meeting, ready to ease rate hikes


The meeting of the monetary policy committee (FOMC) “started at 10:00 a.m. (3:00 p.m. GMT) as planned,” a spokesman for the American central bank told AFP.

The US Federal Reserve (Fed) began a meeting on Tuesday, which will end on Wednesday, during which it should decide to begin a new phase in its fight against inflation and raise its rates less sharply than in recent years. month.

To discover

  • Prime Macron 2022: conditions, amount, date of payment... how does it work?

It must also, during this meeting, publish its updated forecasts for the growth of the GDP of the United States, inflation, and unemployment.

Discussions are due to end Wednesday at midday.

A press release will be issued at 2:00 p.m. (7:00 p.m. GMT), before a press conference by Fed Chairman Jerome Powell thirty minutes later.

Slow consumption

An increase in the key interest rate of half a percentage point is expected, after four very strong increases of three-quarters of a point.

The mighty U.S. Federal Reserve is preparing to slow down the pace, after having, since March, raised its rate from 0-0.25% to 3.75-4.00%, in order to slow consumption, and thus prevent prices from continuing to soar.

Read alsoStock markets turned to the US Federal Reserve

But the full effects of its actions often take months to be felt, and this voluntary economic downturn could, if too severe, push the US economy into recession in 2023. “Time to slow the pace

of rate hikes could come as early as the December meeting

,” Fed Chairman Jerome Powell warned in late November.

And the inflation figures for November, published Tuesday morning, should convince Fed officials to begin this shift in their monetary policy.

Consumer price inflation has slowed more than expected, to 7.1% year on year, from 7.7% in October, and is now the lowest since December 2021, according to the Labor Department's CPI index, which refers to.

The Fed, which wants to bring inflation back to around 2%, is however favoring another measure, the PCE index, which will be published on 23 December.

Source: lefigaro

All news articles on 2022-12-13

You may like

Life/Entertain 2023-03-07T15:55:10.093Z

Trends 24h


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.