(Finance) – “Since today’s inflation is a byproduct of an imbalance between supply and demand, our job at the FOMC is to bring them into a better balance. We will achieve this by adopting a monetary policy tight enough to bring inflation back to our goal We’re not there now, so I predict that further rate hikes will be needed“. This was stated by the chairman of the Federal Reserve in Atlanta, Raphael Bosticin an article published on the website of the US central bank.
“I will need to see indicators of a broad-based inflation easing“, he added.
“There are glimmers of hope After the pace of commodity price increases accelerated in every month but one for 19 months, it slowed in July, August and September, the last three months for which data is available, according to PCE price. index, the FOMC’s preferred index”.
As of March, the FED’s Federal Open Market Committee has raised rates six times, from a range of zero to 0.25% to a range of 3.75 to 4%. In June, the Committee began reducing holdings of FED securities, tightening the budgetanother tool to withdraw money from the economy and thus slow down inflation.