(Finance) – “Soon it will be appropriate” to raise interest rates. This was stated by the Federal Reserve in minutes of the meeting of 25 and 26 Januarywhich revealed that many central bank officials believe a faster rate of hike is guaranteed than in 2015. “If inflation doesn’t go down as expectedit may be appropriate to remove the accommodative policy faster than anticipated, “the minutes read.
A “hawkish” tone that aligns with that of Isabel Schnabel, a “weighty” member of the ECB Executive Committee, who calls in the Financial Times for a “careful reassessment” of inflation prospects and adds: “the risk of acting too much late has risen. ”
Returning to the Fed, the minutes read that US inflation risks are “high and upside”. FOMC members “noted that recent inflation data continued to significantly exceed the committee’s targets, that high inflation is persisting longer than expected, reflecting supply and demand imbalances linked to the pandemic. and the reopening of the economy “.
“However, the central bankers – reads the minutes – argued that high inflation has spread beyond the sectors most directly affected by these factors, supported in part by the strength of consumer demand”.