The Federal Reserve will, this Wednesday (16), close the door on its ultra-loose pandemic-era monetary policy and step up its fight against high inflation with what should be the first in a series of interest rate hikes this year.
The change, starting with an expected 0.25 percentage point increase in interest rates, has been anticipated for some time and has already raised the cost of home mortgages and other types of credit in anticipation of what the Fed will do to stem the price hike that is already at the strongest pace in 40 years.
The urgency surrounding the Fed meeting has intensified as inflation shows no signs of abating and could rise further due to Russia’s invasion of Ukraine that has driven up oil prices this month.
The precise language of the Fed’s monetary policy statement and the details of its updated economic estimates and interest rate projections will provide the first concrete guidance on how all of this affects the view that the current economic expansion can continue even if inflation is reduced.
The statement and the new projections will be released at 15:00 (Brasilia time).
Source: CNN Brasil
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