Inflation hits US-FM.nl

The currency depreciation will fall to 2.5 percent this year.

Inflationary pressures in the United States are eased as problems in the distribution and transportation of goods and commodities ease. This was stated by a senior official of the US Federal Reserve, the Federal Reserve.

According to John Williams, chairman of the Central Bank in New York, inflation will fall to 2.5 percent this year. But he also warns that the forecast is shrouded in great uncertainty due to the current corona infection. Given the rapid recovery and high inflation, the time for the central bank to decide whether to raise interest rates is approaching, Williams promised.

Inflation in the United States has risen to 7 percent a year, the highest in almost 40 years. The ongoing high inflation is under pressure from the central bank to raise interest rates to control inflation. Fed President Jerome Powell has already said that if prices rise too fast, interest rates will have to rise soon.

Markets are widely expected to raise interest rates in the US in March. According to Williams, the duration will depend on how the recovery from the crisis progresses. He expects inflation to reach its target of 2 percent by 2023.

(ANP)