The US Federal Reserve has raised interest rates sharply since last March. Your boss has now made a prognosis for the future. It could go on as before.
The President of the US Federal Reserve, Jerome Powell, has promised future interest rate hikes to combat high inflation. Further measures are likely to be necessary, Powell said at an event in Washington on Tuesday. A “significant” drop in the inflation rate is to be expected in the current year. However, it will probably take until 2024 before this will again reach the target of two percent set by the Federal Reserve (Fed).
Powell also pointed out that the US job market is in “extraordinarily strong shape”. Last week, following an interest rate decision, the head of the central bank countered speculation on the financial markets that the US central bank could start cutting interest rates this year. The background is recession fears. There was speculation on the financial markets that the Fed might turn away from its fight against high inflation.
The Fed has raised interest rates sharply since March. It wants to bring high inflation under control. The interest rate was most recently raised by 0.25 points to between 4.5 and 4.75 percent after the monetary policy meeting last Wednesday.
Source: Stern
