Fed-Chef Jerome Powell has in view of the persistently high inflation in the USA hopes of imminent interest rate cuts have been dampened.
“Recent data clearly has not given us greater confidence,” Powell said on Tuesday Washington with a view to the latest inflation data. If the inflation rate remains permanently higher, the US Federal Reserve would maintain a strict monetary policy for as long as necessary, said Powell.
Fed aims for inflation rate of two percent
The new figures made it clear that it could take longer than expected to achieve confidence, a They are slurred to initiate. In March, inflation data was again higher than expected. Consumer prices rose by 3.5 percent compared to the same month last year.
The Fed is aiming for an inflation rate of two percent. Also the US labor market has appeared very robust, which increases the likelihood that the US Federal Reserve could cut interest rates later than previously expected.
At its most recent meeting in March, the Fed once again kept its key interest rates stable and indicated cuts this year. The key interest rate remained in the range of 5.25 to 5.5 percent, making it the highest it has been in more than two decades. Commercial banks can borrow central bank money at this rate.