On the possibility of a recession, Deese acknowledged that “there are always risks” given the global challenges and the monetary measures adopted to address the high rate of inflation in the US, the highest since the early 1980s.
The Federal Reserve (Fed), the US central bank, kept interest rates between 0% and 0.25% for two years to stimulate the economy; but it has already authorized two consecutive increases so far in 2022 to contain the price boom.
Thus, the official interest rate of the world’s largest economy is now in a range of between 0.75% and 1%, and additional increases in the price of money in the US are expected.
In this sense, Deese insisted that it is necessary to give the Fed “independence” to do its job, noting that “has the tools to fight inflation.
According to data from the Department of Commerce, inflation in the United States remains at historical levels not seen for forty years, although it moderated slightly in April, standing at 8.3%, two tenths less than in March. Meanwhile, unemployment in the US stood at 3.6% of the labor force in April, the lowest in two years.
Source: Ambito
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