Many economists and experts think this could even cause recessionary effects on the economy, which is recovering but has to contend with a general situation that is far from easy. In short, the Fed thinks that despite the fact that there are risks on economic recovery from a steady and robust rise in the cost of money, not vigorously countering the rise in inflation could have even worse effects. But a failure to restore price stability would be even worse for the economy.” the unfortunate costs of reducing inflation. “While higher interest rates, slower growth and more flexible labor market conditions will bring down inflation, there will also be a negative impact on the pockets of households and businesses,” Powell said. However, at the same time, Powell also admitted that this rate policy may have negative impacts on the economy and people’s pockets.
As if to say that the two consecutive 0.75% hikes in US rates will certainly not be the last. “The longer inflation remains high, the more of a problem it will be,” said the Federal Reserve’s number one man in Wyoming, and then said that the Fed will “vigorously” use the tools at its disposal in order to continue to combat the flare-up in US prices. In a recent speech in Jackson Hole, Chairman Jerome Powell made it clear that the policy of raising rates will continue until inflation returns to acceptable levels. The Fed seems intent on not backing off an inch on its aggressive policy to counter the record rise in inflation, which has hit 9% in the US. The risk of a recession lasting too long.Current levels of inflation in the US and Europe.The concerns of Elon Musk and Cathie Wood.
0 kommentar(er)
