Inflation: it will take a few years to get back to 2%, according to the Fed

Inflation: it will take a few years to get back to 2%, according to the Fed

After reaching a peak in more than 40 years in June, at 9.1% year on year, US inflation slowed in July, rising establishing at 8.5%.

Inflation in the United States will take “a few years” to return to the 2% target of the American central bank (Fed), an official of the national government estimated on Tuesday. ;institution, stressing that the rates will continue to be raised to curb this rise in prices.

We have repeatedly communicated our commitment to achieving this 2% level. I think it will take a few years, New York Fed Chairman John Williams said in an interview with the Wall Street Journal.

The situation is very difficult. Inflation is very high. The economy encounters many obstacles. I think it will take a few years, but we will get there, he added.

The size of the key rate hike that will be decided at the next meeting of the Fed's monetary committee, on September 20 and 21, will depend on the data, underlined John Williams, who has a right to vote at the meeting.

But it is clear that we need to raise interest rates significantly by the end of the year, because inflation is much higher. too high. And that's really what we're focused on, he added.

After hitting a 9.1% year-on-year high in more than 40 years in June, US inflation slowed in July, settling at 8.5%, according to the United States. CPI consumer price index.

The figures for August will be published on September 13 and will show whether the slowdown is confirmed.

The job market, on the other hand, remained tight in July, with job vacancies and resignations still as high as in June, according to bureau data statistics released on Tuesday. The labor shortage that the country has been experiencing for more than a year is helping to push prices up.

Fed Chairman Jerome Powell warned in his annual address to the Jackson Hole symposium on Friday that tackling inflation would take time and hurt American households and businesses, but that giving it up would be even more damaging to the economy.

He had thus warned that the Fed would vigorously use its tools by raising interest rates.

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