The United States Federal Reserve (Fed) it estimates that it will have to maintain the pace of its restrictive monetary policy for a good part of 2023 and does not rule out increasing it if necessary to ensure that inflation continues on a downward trend.
This is underlined by the Fed in the minutes of the meeting held on January 31 and February 1, when he decided a new rise in interest rates -the eighth in a row-, although 0.25 points, less than the previous ones.
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In turn, the members of the Open Market Committee were clear from the beginning of this meeting that it was necessary to raise interest rates again, although there was also an agreement from the beginning that said increase should slow down.
“The restrictive policy would need to be maintained until the data shows that inflation falls substantially and is on track for 2%,” the institution said, stressing that this is its objective. Also, the members added that this “will probably take a while”, according to the minutes.
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So far in the minutes there are no expectations of stopping rate rises in the short termnor is it guaranteed that the slowdown in these increases will be able to be sustained.
For their part, the members of the committee agreed to be “prepared” to change the pace of the increases if “risks” emerge that could impede the main objective of reducing inflation. It should be noted that currently the inflation rate in the American country is 6.4%.
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The documents still do not contain discrepancies on monetary policy, although there are different views on the course of the economy.
Many committee members estimate a slowdown in US economic growthAlthough some continue to speak of a “mild recession in 2023”, and most stressed the “notable uncertainties” that lie ahead, from a larger-than-expected drop to “persistent” inflation.
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And although in their macroeconomic analysis they speak of “modest” growth in both spending and activity, They also underlined the strength that the labor market continues to maintain despite the rate hikes already agreed.
On the other hand, they agreed that the Russian invasion of Ukraine continues to cause a human and economic cost that continues to contribute to high global uncertainty.
EFE
