The US president said that monetary policy should accompany the economic measures he is doing in his management. He said it, after Powell’s speech in the Senate.
The President Donald Trump On Wednesday, interest rates in the United States are lowered, in its most recent intervention in the policies established by the Federal Reserve (Fed, Central Bank) independently.
“Interest rates should be lowered, something that would go hand in hand with the next tariffs”wrote the president in his social truth network, the day after the president of the FED, Jerome Powell, reiterated at a hearing in Congress that the institution has no “haste” to adjust the monetary policy.
Trump’s word goes against the vision of the Fed. In his testimony before the Senate, the president of the Federal Reserve, Jerome Powell, reaffirmed that the institution has no plans to modify its inflation objective of 2% and that it does not consider increasing interest rates at this time. Although inflation has advanced towards this goal, he acknowledged that it remains high, and the labor market, although solid, does not present significant inflationary pressures.
Jerome Powell.webp
Powell expressed a general optimism about the economy, but clarified that, if inflation is stabilized or the labor market weakens unexpectedly, the Fed could choose to maintain stable rates for longer or even relieve monetary policy. Economists point out that Fed generally avoids abrupt changes in its interest rate approach, preferring a more gradual and observational strategy.
Inflation surprises in the US
The United States Consumption Price Index (CPI) rebounded in January in the 3% at interannual ratecompared to 2.9% registered in December, according to the data published by the US Labor Statistics Office. For its part, the underlying inflation, which excludes food and energy, has risen to 3.3%. Both indices have worsened the forecasts
This way, General inflation marks its fourth consecutive month in the North American country, After the general index fell in September last year to its lowest level since February 2021, although still above the 2% year -on -year target of the Federal Reserve. The core CPI, meanwhile, rebounded after falling a tenth in December.
In monthly terms, the general CPI increased by 0.5% in January, two tenths above expected, and accelerates after rising 0.4% in December. In the case of the nucleus, the forecasts have also worsened after registering a 0.4%rise.
Source: Ambito
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