Inflation is becoming a “pervasive” phenomenon in the US economy, a member of the Federal Reserve said on Friday. According to Lisa Cook, the US central bank’s fight against inflation by raising interest rates is not over yet.
Since March last year, the Fed has raised its key rate nine times in a row to deal with inflation, which is still well above its long-term target – while the target is 2%, real price increases are at least four times higher. . .
Several Fed officials have said in recent weeks that interest rates may need to be raised and kept high to control inflation.
Headline inflation and other major indicators of consumer price growth remain strong, Federal Reserve Board member Lisa Cook said Friday.
“All of these measures have reduced the peak of growth, but (the pace) remains high, suggesting that inflation is spreading throughout the economy,” said Cook, who is one of 12 members of the committee of the Fed deciding the base level. rates.
Cook said the return to stability “could be long and likely to be bumpy and bumpy”. She added that the “appropriate path” to raise interest rates will be determined by the impact of the recent financial turmoil in the bank lending industry.
“However, if the economic data stays at the same levels and shows a slowdown in the process of reducing inflation, we may have to tighten seriously,” she explained.
The Federal Reserve will announce its next interest rate decision on May 3.
CME Group financial analysts expect the US central bank to raise its key rate by 0.25%.
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