2024-07-19 06:28:49
The president of the Federal Reserve (Fed), Jerome Powellsaid yesterday that recent data increases the US central bank’s confidence that the inflation is slowing towards its 2% target, a trend that signals interest rate cuts. interest on the horizon.
“We didn’t gain any additional confidence in the first quarter, but the three second-quarter readings, including last week’s, add some confidence,” Powell said in an interview with David Rubenstein, of the Economic Club of Washington DC.
Although the Fed has focused mainly on the inflation – which soared in the wake of the Covid-19 pandemic – is now also keeping a close eye on its mandate to promote maximum employment, Powell added.
“If we saw an unexpected weakening in the working market, “That could also be a reason for a reaction on our part,” he said.
To relieve the demand and cool inflation, The central bank quickly raised its benchmark interest rate in 2022. Since then, it has kept rates at their highest level in decades amid sharply rising prices.
But last week, the key inflation indicator, the consumer price index (CPI), fell more than expected, which was positive for the authorities.
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2024-07-19 06:28:49