The Federal Reserve estimates that it will use all the tools at its disposal to ensure the “smooth landing” of the US economy – despite the looming risks – in its attempt to tame inflation, the US Secretary of the Treasury said on Wednesday. Janet Glenn.
Speaking at a conference hosted by The Wall Street Journal, Glenn stressed that she has full confidence in the health of the US economy, but added that inflation, which has been rising for four decades, is a problem and it is primarily the Fed’s job to curb it.
A goal that is achievable, according to the US Secretary of the Treasury, which, however, points out that the Fed must show “skill” and be “also lucky” in this effort to achieve a “smooth landing” of the US economy, at a time when fears are growing that the Fed’s increasingly aggressive policy could derail economic growth.
Glenn made that assessment just hours before the Fed announced its second consecutive rate hike, which is expected to be higher than the first in March. In particular, the Fed estimates that it will raise interest rates by half a percentage point on Wednesday, something it has been doing since 2000.
The US Treasury Secretary noted that the rise in inflation is largely due to the problems created by the coronavirus pandemic in the supply chains, but also to the latest geopolitical developments with the Russian invasion of Ukraine, a development that has pushed up energy prices internationally. .
Discussions continue to extend sanctions against Russia
Referring to the war in Ukraine, the US Secretary of the Treasury noted that the US is in constant contact with its partners with the aim of expanding sanctions against Russia, adding that “further action” could be taken to pressure Moscow to stop its attack on Ukraine.
Glenn did not elaborate on the actions, but said further sanctions were possible “if Russia continues to wage war on Ukraine.”
Source: Capital
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