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Top US central bank official sees inflation pressure easing

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Inflationary pressures in the United States are easing as problems with the supply and transportation of goods and materials appear to be easing. That’s what a top official of the US central banking umbrella Federal Reserve said.

According to John Williams, president of the Fed in New York, inflation will fall to 2.5 percent this year. But he also warned that the forecast is surrounded by great uncertainty due to the ongoing corona pandemic. Given the rapid recovery and high inflation, the time for the Fed to make a decision on raising interest rates is approaching, Williams assured.

Inflation in the US is at 7 percent year on year at its highest level in nearly 40 years. The ongoing high monetary depreciation puts the Fed under increasing pressure to raise interest rates to curb inflation. Fed Chair Jerome Powell has already said that if prices continue to rise too fast, interest rates may have to go up sooner.

The markets are widely expected to raise interest rates in the US in March. According to Williams, the time frame will depend on how the recovery from the crisis progresses. He expects inflation to reach its target of around 2 percent by 2023.



Top US central bank official sees inflation pressure easing
Source link Top US central bank official sees inflation pressure easing

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