The US Federal Reserve (Fed) is ready to “further increase interest rates if necessary” and will “maintain a restrictive monetary policy” until inflation moves firmly towards the 2% target, its chairman, Jerome, said on Friday. Powell.
In his keynote speech at the annual meeting of central bankers in Jackson Hole, Wyoming, Jerome Powell also stressed that “reducing inflation to 2% sustainably will require a period of below-trend economic growth, as well as a slowdown in labor market conditions”, still very tense with an unemployment rate that remains low, around 3.6%.
Inflation stands at 3.2% in July
Last year, during this annual meeting organized by the Federal Reserve in the Wyoming mountain station, Jerome Powell had caused a sharp fall in the markets by announcing that the fight against inflation – then 8.5% – was going to “paint “.
In eighteen months, the Federal Reserve has raised rates 11 times from zero to 5.50%. The cost of real estate loans, for example, has reached a maximum in more than twenty years: more than 7.20% for standard thirty-year loans. Inflation stands at 3.2% in July, according to the CPI index.
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Source: BFM TV
