(Finance) – An increase in interest rates, by fifty basis points, in May deserves to be considered and could be very likely. He affirmed it Charles Evans, the president of the Chicago Fed, adding that it will not object to bringing the cost of borrowing from 2.25% to 2.5% by the end of the year. A pace – explained the banker – that would require a couple of rate hikes of 50 basis points at the next Federal Reserve meetings.
However – added Evans – the Fed should not raise rates so fast that it does not have enough time to assess inflationary pressures and adjust monetary policy.
The US central bank raised interest rates last month for the first time in three years, and as inflation accelerates it is expected to pick up its pace with half a percentage point hikes for a couple of meetings instead of the usual. quarter point increments.
Meanwhile, there is great expectation for the data that will affect the monetary policy of a Fed that has already shown itself to be more aggressive: consumer prices for March, scheduled for tomorrow, Tuesday 12 April, which should show an increase of 8.4 %, well above the bank led by Jerome Powell’s 2% inflation target. Wednesday will instead be the turn of the producer price index.