Washington (EFE).- The US Federal Reserve (Fed) on Wednesday accepted a half-point hike in interest rates, which will now range between 4.25% and 4.5%, in another attempt to contain inflation.
This is the seventh consecutive rate hike since March, although it is more muted than the last four, which were 0.75 points.
In its statement, the Fed’s Federal Open Market Committee also forecast that further rate hikes “will be appropriate” going forward to continue to help contain prices and bring the inflation rate back to its target of 2. %.
In deciding the pace of these future increases, the committee will take into account the effects that this restrictive policy has on economic activity and inflation.
In any case, in his statement, he has already pointed out that job creation remains robust and the unemployment rate remains low, and he sees modest growth in spending and activity.
It also considers that inflation remains high, reflecting the imbalances still linked to the pandemic and the supply chain, as well as increases in food and energy prices due to “pressures” from outside the country.
“The committee will be ready to adjust its monetary policy so that it is consistent with the risks that may arise and which may hinder the objectives” of this body, the note continues.
The year-on-year inflation rate in the United States continued to decline and stood at 7.1% in November, 6 ticks lower than in October, according to data released Tuesday by the Bureau of Labor Statistics ( BLS).
When the Fed announced its fourth consecutive 0.75 point hike last November, Powell believed it was still possible to bring inflation back to its 2% target without triggering a recession.
Given the latest unemployment data, the Fed’s restrictive monetary policy has not yet had a strong impact on the labor market.
And it is that unemployment in the United States did not register any changes in November and the rate remained at 3.7%, or around 6 million people.
During this month, 263,000 new jobs were created, ie 2,000 more than in October.