The inflation data in the United States will be known this Wednesday and, when everything indicated that the Federal Reserve could moderate its monetary policy, the statements of an official cast doubt on that possibility.
It will be known, this Wednesday, the inflation data for April in the United States, which will be key to future decisions taken by the United States Federal Reserve (Fed). The latest statements by the agency’s representatives had left floating the idea that the central bank of the northern country would begin to moderate, going forward, its rate policy, after it raised its reference interest rate to one day in another 25 basis points to the range of 5.00%-5.25%.
The Committee of the organization had indicated that it could pause the campaign of tightening of the most rapid monetary policy of the central bank of the United States since the 1980s, although it maintained an aggressive bias on that last raise.
However, this Tuesday, on the eve of the publication of the inflation data, the president of the Federal Reserve Bank of New York, John Williams, shaken the expectation that there will be a moderation of US monetary policy. He said that if the US monetary regulator needs to raise interest rates again, it will act accordingly.
An official anticipated new possible rate hikes
“We haven’t said we’re done” with rate hikes, Williams said at an event held by the Economic Club of New York. and noted that, “if further tightening of policy is appropriate, we will do so.” Also, he anticipated that there is very little chance that the Fed will lower interest rates this year.
Surely, these statements will affect the dynamics of the international markets this Wednesday, when all investors and Wall Street operators will remain expectant for the arrival of the news of the price data that will be released at 10 in the morning (Argentine time). .
Last week, the US employment report It served as a kind of down payment in that regard. He revealed that the level of hiring increased in April and also reported an increase in the wages of workers.
These data gave indications of a sustained strength of the labor market in that country and that could make the fedthat has raised its policy rate by 500 basis points since March 2022keep it higher for a while.
Unemployment fell to 3.4% from 3.5% in March and the report stated that non-farm payrolls increased by 253,000 positions job last month, the Labor Department’s employment report showed. March data was revised downward to show that 165,000 jobs were added instead of the 236,000 previously reported.
However, analysts considered that the wage growth remains too strong to be consistent with the 2% inflation target of the fed.
Source: Ambito
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