Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The Fed's Board of Governors urged to continue raising the rate


February, 14 2023
watermark Economic news

Michelle Bowman, a member of the Board of Governors of the US Federal Reserve System, said that despite the fact that inflation in the US is slowing down, there is still a need to further increase the base interest rate.


«We are still far from achieving price stability, and I believe that we need to continue tightening monetary policy in order to return inflation to the target,» Bowman said at a conference of the Association of American Bankers.


At the same time, the politician did not rule out that such actions could limit economic activity and weaken the labor market somewhat. Today, employers are raising salaries in order to attract and retain employees in a tough labor market. And this puts upward pressure on the dynamics of consumer prices, even when other components of inflation become more moderate due to the improvement of the situation in supply chains.


Today we should pay attention to the January inflation data. Analysts predict that consumer prices in the States rose by 6.2% year-on-year last month, compared with 6.5% in December. It is worth noting that inflation has already slowed significantly from June's 9.1%, but it is still far from the Fed's 2% target.


Bowman also said that further rate decisions will be made taking into account consistent evidence of slowing inflation, as well as economic and geopolitical events. 


In general, since March 2022, the Federal Reserve has raised the base interest rate by 4.5 percentage points to 4.5–4.75% per annum. The rate of increase has been the highest since the early 1980s.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.