2023-09-07 23:06:05
(Washington) A Federal Reserve (Fed) official said Thursday that if the US central bank manages to take “a golden path” by taming inflation without causing a recession, it would be “a triumph”.
Austan Goolsbee, chairman of the regional office of the Chicago Fed and a voting member of the monetary committee this year, considered that it was “possible that we are on a golden path, but it is not guaranteed”.
“It would be almost unprecedented to achieve a sharp drop in inflation without causing a serious recession,” commented the official in an interview with public radio NPR.
“It would be a triumph if the Fed and other central banks were able to achieve this,” he said. “I think right now we can do it. In any case, that is what we are aiming for, ”added Mr. Goolsbee.
Like his colleagues, he reiterated that the Fed remained “attentive to economic data” however.
The Federal Reserve, maneuvering to slow inflation, has raised its rates 11 times since March 2022, in order to increase the cost of credit, and thus slow consumption and investment. To, ultimately, ease the pressure on prices.
Inflation is at 3.2% over one year in July, according to the CPI index, while the unemployment rate has only increased very slightly so far (to 3.8%).
US GDP growth held at an annualized 2.1% in the second quarter and, for the 3e quarter, the Atlanta Fed’s forecast barometer – GDPNow – is betting on an expansion of 5.6%, still at an annualized rate.
For her part, Dallas Fed Chair Lorie Logan said it would be “appropriate to skip” another rate hike at the next Monetary Committee meeting on September 20.
“But jumping doesn’t mean stopping” all rate hikes, she said in a speech in Dallas.
“In the coming months, the assessment of the data and the outlook might confirm that we need to do more to extinguish inflation,” added Mr.me Logan.
“The monetary committee will keep the bucket of water handy and should not hesitate to use it if necessary,” she concluded.
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