(Finance) – The president of the Federal Reserve, Jerome Powellreiterated the need for the American Central Bank to continue with decisive increases in interest rates to curb inflation.
“We cannot prematurely ease monetary policy. We we must act firmly as we did and we must persevere until the work is done “for avoid price escalationas happened in the 1970s and early 1980s “- said the banker -” We think we can avoid the kind of very high social costs “that the Fed, at the time,” had to impose to curb. inflation and establish a long period of price stability “.
Powell’s words came just as he came from Frankfurt on president of the ECB, Christine Lagarde explained the 0.75% rate hike in Europe, decided at today’s Eurotower meeting.
A decision widely discounted by the market as well as the one that the Federal Reserve will announce during the next meeting on 20-21 September, to raise the cost of money by 75 basis points, for the third consecutive time.