America is on its way to avoiding a recession, but the unemployment rate may rise. By Reuters

2023-07-30 17:16:00

© Archyde.com. Minneapolis Federal Reserve Chairman Neel Kashkari during an interview with Archyde.com in New York on May 22, 2023. Photo: Mike Segar/Archyde.com.

WASHINGTON (Archyde.com) – Federal Reserve Chairman Neel Kashkari said in Minneapolis that the United States appeared to be on its way to avoiding a recession, but it might see a slight rise in the unemployment rate as it continues to grapple with inflation.

Kashkari said in an interview with CBS News on Sunday that he is not sure if the Federal Reserve has finished raising interest rates, and that monetary policymakers will use the data to form their opinions when they meet in September.

The US central bank raised interest rates a quarter of a percentage point on Wednesday, to their highest level in 16 years, attributing this to continued high inflation. The bank set the main overnight rate at a range of 5.25 to 5.5 percent. The statement accompanying the announcement left the door open for another increase.

The US central bank aims to reduce the inflation rate to 2 percent.

(Prepared by Mohamed Attia for the Arabic Bulletin – Edited by Ali Khafaji)

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