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The United States slowed down the price escalation, up 0.25 points


On Tuesday, the US Federal Reserve decided to raise interest rates in a quarter of a pointwhich is a slowdown in the escalation in recent months by the central bank to control the inflation of the world’s first power.

The 0.25-point increase approved by the Federal Reserve’s Federal Open Markets Committee occurred after more pronounced increases in recent meetings: in December it was 0.50 points and in November it was 0, 75 points.

After the recent decision, the US central bank left interest rates in the range of 4.5% to 4.75%, which is the highest level since 2007, and confirmed the highest pace of interest rate hikes since the beginning of the 1980s.

The moderate hike shows how the Fed is trying to combine the goal of keeping inflation in check, but at the same time, not causing a cooling in the economy that seriously affects the labor market or causes a recession.

The decision came after half a year in a row of moderation in inflationwhich peaked at 9.1% in June, its highest level in more than four decades, but has since fallen to 6.5% in January.

This price development proves the recipe that the Fed has applied since March last year, with eight consecutive hikes in interest rates that have partially achieved their goal without having, for the time being, a profound impact on the economy.

However, the central bank has made it clear that this is not the time to quickly toss bells. In explaining the price hike, the agency said, “Inflation has been contained to a certain extent, but it is still high,” as it also indicated that The war in Ukraine “Continues to contribute to rising global uncertainty.”

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Last December, members of the Federal Reserve projected a schedule of rate hikes for 2023 that would leave them in a range between 5% and 5.25% by the end of the year. In yesterday’s decision, they again referred to the need for “successive increases” to reach the appropriate levels to achieve the desired goals. There were hopes in the markets that that signal would fade in yesterday’s decision, which could give optimism about more than expected rate hike easing.

Fed Chairman Michael Powell sought to discourage such speculation at the post-rate news conference: He defended that inflation moderation was still “at an early stage” and that the central bank needed to see clearer data to turn it around. your strategy.

On combating inflation — along with labor market health, which are two terms the Fed has — “there is work to be done,” he said and emphasized that “we’re going to continue down that road until we’re done with the job.”

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