The bank has already raised borrowing costs from near zero in March 2022 in a bid to cool the economy and bring price inflation under control.
Some at the Fed expect further action to be needed.
Some at the Fed expect further action to be needed.
The announcement in the US comes ahead of Thursday’s meeting of the Bank of England, which is facing its own inflation fight.
The Bank had been widely expected to announce a rate rise. But data on Wednesday showed UK consumer prices rose at a slower rate than expected last month, raising questions about its course of action. The European Central Bank will meet next week.
“The Fed is going through the same challenges other central banks are in terms of fine-tuning policy,” said Sarah House, senior economist at Wells Fargo.
“Increasingly the risks are shifting from inflation being the one and only focal point, to having to balance the inflation fight to make sure the Fed doesn’t do unnecessary damage.”
Fed officials appear increasingly optimistic they will be able to bring inflation under control, without triggering a painful economic downturn.
Some at the Fed expect further action to be needed.
The bank has already raised borrowing costs from near zero in March 2022 in a bid to cool the economy and bring price inflation under control.
The announcement in the US comes ahead of Thursday’s meeting of the Bank of England, which is facing its own inflation fight.
Some at the Fed expect further action to be needed.
Some at the Fed expect further action to be needed.
The announcement in the US comes ahead of Thursday’s meeting of the Bank of England, which is facing its own inflation fight.
The Bank had been widely expected to announce a rate rise. But data on Wednesday showed UK consumer prices rose at a slower rate than expected last month, raising questions about its course of action. The European Central Bank will meet next week.
“The Fed is going through the same challenges other central banks are in terms of fine-tuning policy,” said Sarah House, senior economist at Wells Fargo.
“Increasingly the risks are shifting from inflation being the one and only focal point, to having to balance the inflation fight to make sure the Fed doesn’t do unnecessary damage.”
Fed officials appear increasingly optimistic they will be able to bring inflation under control, without triggering a painful economic downturn.
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