US inflation is ‘widespread’, says senior Fed official

inflation of USA is “widespread” and the road to a small and stable price increase could be long and difficult, a senior official at the department warned on Friday. us federal reserve (Fed, central bank).

The various measures used to calculate inflation “they have passed their peaks but remain high, suggesting that inflation has become pervasive in the economy”said Lisa Cookmember of the committee of the fed who sets rates, in a speech at Georgetown University, Washington.

MORE INFORMATION | Hugo Chavez’s nurse and bodyguard are each sentenced to 15 years in prison in the US.

inflation in USA slowed to 5% year-on-year in March, the lowest rate in nearly two years, according to the index CPI posted last week. In any case, it is too high compared to the target of 2% of the fed.

The institution takes into account another measure, the index PCE, whose March figures will be published on April 28. Cook anticipates a figure slightly above 4%.

“However, the big question is whether and how fast inflation will continue to decline towards our 2% target”he continued.

“So far, most of the decline has been due to the moderation in energy prices”he said, adding that “the road back to our goal of low and stable inflation could be long and likely bumpy and bumpy”.

To curb inflation, the fed it has been raising its benchmark rate since March, prompting commercial banks to offer their clients loans at higher rates, in order to slow consumption and ultimately ease price pressure.

The next meeting of the fed It will be on May 2 and 3. Rates are currently in a 4.75-5.00% range, the highest since 2007, and most market participants are pricing in another quarter-point hike, depending on the valuation of CME Group.

CHECK HERE | Biden will announce his candidacy for re-election on Tuesday, says the Post

Source: Elcomercio

jack

I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.