US Federal Reserve Member Collins confirms that inflation is still very high

2023-09-22 15:50:16

US Federal Reserve

Statements by US Federal Reserve Member Susan Collins on Friday included the following points:

Despite recent encouraging data, inflation remains very high. Inflation can only fall with a modest rise in unemployment, which sees a broad path to achieve this outcome. The current policy making process requires a great deal of patience to get the right signal from the data. Key components of inflation, such as basic services, have not shown sustained improvement. Be vigilant regarding inflation risks. It is too early to be confident that inflation is under control given that economic activity remains above trend. Cash levels are returning to pre-pandemic standards. Household and corporate spending is expected to be more affected by higher interest rates. Some inflation readings were encouraging. Economic activity remains above trend.

Earlier, the giant American investment and asset management company Vanguard Investment Strategy Group – which manages assets worth about 8.1 trillion US dollars from mutual funds – published a note, in which it explained its expectations regarding the US Federal Reserve’s movements regarding interest rates during the tightening cycle. current.

According to Vanguard estimates, the Federal Open Market Committee may need to raise interest rates 3 more times, and the company added that it believes that the US Federal Reserve has not yet reached the end of the monetary tightening cycle, in light of growth and labor market data, which, although slow, is still… Strong.