The U.S. Central Bank (Fed), “strongly determined to return inflation to its 2% target”, raised its key rates three quarters by one percentage point on Wednesday, the biggest increase since 1994, in an attempt to control inflation. higher than expected. inflation.
With this third consecutive increase, these rates are now in the range between 1.5 and 1.75%.
The Fed now expects inflation to be 5.2% this year, down from the 4.3% expected in March, and will therefore make further increases at upcoming meetings in 2022.
At the same time, it expects weaker -than -expected growth this year at 1.7%, against 2.8% previously.
He also expects the unemployment rate to be higher than expected at 3.7%, against 3.5% previously.
General economic activity has risenafter the contract in the first quarter, the Fed mentioned in a statement after its meeting, cited stable employment gains in recent months and an unemployment rate remaining at low levels.
But inflation remains high, reflecting pandemic -related supply and demand imbalances, higher energy prices and wider pricing pressureshe added.
The institution recalls that the invasion of Ukraine and the sanctions were created further upward pressure on inflation and weighing on global economic activity.
In addition, lockouts in China have exacerbated supply chain issues. All of this is slowing down the US economy.
The Committee notes the risks of inflationunderlined the Fed.
More details are next.
France Media Agency
Source: Radio-Canada
