The press secretary of Joe BidenKarine Jean-Pierrehad acknowledged that the government expected a “high indicator” of inflation that reflects a rise in the price of fuel and food. But at the same time he maintained that it is an “outdated” data since the price of gasoline began to fall in July. Consultants expected 8.8% year-on-year.
In this context, the next trip of the president, Joe Biden, to the Middle East, where he will try to convince the main countries of the region to produce more oil, is of vital importance.
Economic studies report a decline in fuel values at the beginning of July and for this reason they expect a cut in the inflation rate at the end of the period.
Inflation in the US: what will the Fed do now?
In its last meeting on June 15, the FED increased the interest rate by 0.75% to a range between 1.5% and 1.75%, in what was the strongest rise in the last 30 years. It was the third adjustment made by the body in charge Jerome Powell in 2022.
After that debate, the FED confirmed a growth path for the reference rate until reaching 3.4% at the end of the year, and saw a new adjustment of 0.75% in July as “very possible”.
“The committee is strongly committed to the goal of bringing inflation back to 2%,” the US central bank said on the occasion of the aggressive policy adopted last month.
In the same statement, the FED admitted that it was willing to give up growth and admit an increase in unemployment under the objective of containing inflation.
Source: Ambito
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