The Federal Reserve (Fed), the central bank of the United States, decided this Wednesday to pause interest rate hikes for the first time since March 2022, keeping them in the range between 5% and 5.25%, according to a statement. released by the entity.
This decision was made known the day after the data published by the US Department of Labor, which shows that inflation in the United States slowed significantly from 4.9% in April of this year to 4% in May. , the lowest minimum recorded since March 2021.
In the statement in which it announced today the decision, taken unanimously by its monetary policy committee, the Fed indicated, however, that it remains very attentive “to inflation risks”, considering that it remains “high” and reinforcing the objective of reaching the goal of 2% in this indicator.
According to the Fed, maintaining this range will allow the committee to “evaluate additional information and its implications for monetary policy.”
“The committee has a strong commitment so that inflation returns to its goal of 2%,” he stressed.
Even so, the Fed warned that it will continue to monitor the implications of the information it receives on the country’s economic prospects.
“The committee will be prepared to adjust its guidance on monetary policy, as appropriate, in the event that risks arise that may prevent the achievement of the objectives,” he proposed.
According to the same note, the committee’s assessments will take into account a “broad range of information”, including labor market conditions, inflation pressures and expectations, and financial and international developments.
In monthly terms, the US Consumer Price Index (CPI) grew 0.1% in May, compared to the 0.4% observed in April, the US Department of Labor reported on Tuesday in a statement .
Annual inflation was in line with analysts’ forecasts, but fell more than expected in monthly terms, as the market pointed to a 0.4% price hike in May.
Source: TSF
