The US Fed is ready to raise rates by 50 basis points at once

The head of the Fed, Jerome Powell, said that the Central Bank is ready to act more decisively and raise the key rate by 50 bp at once. Much will depend on the development of the inflationary situation. Its growth must be stopped. And this is now the main task that the Fed needs to solve. A slowdown in economic growth and even some deterioration in the labor market in the short term is not so important. According to the statistics for February, the growth rate of consumer prices in the country reached 7.9%. Such high inflation has not been observed in the United States for the past almost 40 years. The Fed is concerned that it may continue to rise and reach double digits. This will be facilitated by a rise in the price of energy carriers against the backdrop of a reduction in supply due to anti-Russian sanctions. In addition, problems in the field of supply persist, which is also a negative factor for the dynamics of consumer prices.

Source: xCritical.com