Inflation will take time to reduce

He President of the US Central Bank (Fed) Jerome Powellhe insisted that the regulator remains committed to the mission of returning inflation to 2% in the United States and confirmed that economic data continued to show that it would take time.

“So far, the data has continued to support the board’s view that the reduction in inflation will take some time“, he pointed out at a public event held in Washington.

Powell admitted it “banking tensions” that arose at the beginning of March, with the collapse of several banks, “probably meant that our rate didn’t need to rise as much as it would have” had the banking crisis not happened. “Of course, the extent of that is very uncertain,” he said.

“While financial stability tools have helped calm conditions in the banking sector, developments contribute to stricter credit conditions and it is likely to weigh on economic growth,” he said.

Still, he insisted “the committee is so committed to research that it is returning to our 2% goal”.

“We believe that fact failure to reduce inflation would not only prolong the pain but ultimately increase social costs return to price stability, which would cause even greater damage to families and businesses,” he added.

Aware of how his words could affect the markets, Powell was supported at all times by a speech written on sheets of paper, in a dialogue in which he followed him Former Fed Chairman Ben Bernanke.

She did not shed any light on what the Federal Reserve’s next decision will be.whether they will decide to continue raising exchange rates or pause.

The the next meeting of the Federal Open Market Committee (FOMC) of the FED will be held on June 15 and 16.

The annual rate of inflation in the United States fell again in April, for the tenth month in a row, and amounted to 4.9%although compared to March, it fell by only one tenth.