The president of the Federal Reserve Bank (FED) of Philadelphia, Patrick Harker, added his voice to a series of Fed speakers on Thursday, highlighting that progress in inflation has “slowed down.” Those responsible for the FED policy are hurrying to soften the markets before the next publication of the Personal Consumption Price Index (PCEPI) this week, which is probably directed to an increase, since inflationary pressures begin to cook once again under the surface of the US economy.
Key aspects
The policy rate remains restrictive enough to continue exerting downward pressure on inflation.
The Fed observes the data and then reacts if necessary.
We should let monetary policy continue to function.
The policy rate is not negatively impacting on the economy.
Progress towards the inflation target of 2% has slowed.
I am optimistic about economic perspectives, despite the challenge of bringing inflation back to the objective.
We should not act on politics in any direction based on a single report that covers a month of data.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
