Disinflation would likely take longer than previously thought
WASHINGTON – Federal Reserve officials at their last policy meeting said they still had faith that price pressures would ease at least slowly in coming months, but doubts emerged about whether the current level of US interest rates was high enough to guarantee that outcome and "various" officials said they'd be willing to hike borrowing costs again if US inflation surged.
While the policy response for now would "involve maintaining" the Fed's benchmark policy rate in the current 5.25pc-5.
The impact of high US interest rates on the economy has not been as dramatic as some Fed officials expected, a positive development for the job market in particular but one that has left a question mark about inflation.
But even as Fed officials acknowledged the risk of inflation pressures again building in the economy, they largely viewed the data from the start of the year as a temporary setback in the battle to return inflation to the 2pc target. In the weeks since then, however, some signs have emerged that inflation is again easing, demand is softening and the labour market is coming more into balance. Fed officials are watching closely for signs of a possible slowdown in consumption, and warnings from consumer-facing companies point in that direction.
US Inflation US Interest Rates Federal Reserve US Consumers Borrowing Costs
پاکستان تازہ ترین خبریں, پاکستان عنوانات
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