HomeWorldUS Federal Reserve does not rule out "more surprises" in inflation

US Federal Reserve does not rule out "more surprises" in inflation

US inflation has registered peaks not seen in 40 years in the country

The president of the Federal Reserve (FED) of the United States (USA), Jerome Powell, recognized this Wednesday that the inflation registered in the country generated surprise to the monetary authorities and asserted that there could be more.

"Obviously, inflation has surprised (...) over the last year, and more surprises could be expected," Powell said in his appearance before a Senate committee, quoted by the AFP news agency.

It should be remembered that US inflation has registered peaks not seen in 40 years in the country, as a result of the sanctions promoted by the North American nation and the European Union (EU) against Russia, which has generated shortages of some products and the accelerated increase in fuel.

Furthermore, according to the Reuters News Agency, Prices have been already high before the Russia-Ukraine conflict started, at the end of February; however, since mid-March, fuel costs have risen, while crude oil prices have risen only modestly.

During his appearance before the Senate, Powell recalled that the FED had raised reference rates in the last three meetings, which has meant an increase of 1,5 percentage points; however, they are expected to continue to rise after new economic data.

The head of the Fed assured that the communication of the Central Bank would be “as clear as possible”. 

Inflationary background in the US

In mid-June, the key US lending rate, determined by the Federal Reserve was at 0,75 to 1 percentage point earlier, after two increases of 25 basis points and 50 basis points, respectively, in March and May.

For her part, the Secretary of the Treasury, Janet Yellen, He said he expects growth to slow.

Asked about rising inflation, facing the US and an inevitable recession in an interview on ABC News' 'This Week' show published on Sunday, Yellen admitted that inflation was "unacceptably high". » and this was due in part to the rise in energy and food prices caused by the conflict between Russia and Ukraine.

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