WASHINGTON (Reuters) – Inflationary pressures in the United States have eased as problems in the distribution and transportation of goods and goods eased. This was stated by a senior official of the US 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 stands at 7 percent year-on-year, the highest level in nearly 40 years. The central bank is under increasing pressure 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.
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