The United States Federal Reserve (Fed) believes that it will not be “appropriate” to cut interest rates this year with inflation that remains high, according to extracts from the minutes of its last meeting, published on Wednesday.
“No participant (in the meeting) anticipates that it may be appropriate to start reducing interest rates in 2023,” said these documents, released a few weeks after the appointment in which the Fed raised its reference rates by half a percentage point, to the range of 4.25%-4.50%.
This is the highest rate level since 2007, with a inflation which is in turn the highest in 40 years.
The main hierarchies of the american monetary authority Rather, they expect “continuous increases” in rates that will be “appropriate to achieve the objectives” of inflation of 2% per year, a level considered healthy for the economy.
Thus, they were in favor of maintaining “a restrictive policy” on rates until the inflation is on a “sustained” downward trajectory, which “will take some time.”
Some directors of the entity recalled that history shows the risk of a “premature easing of monetary policy.”
The Fed however, it moderated its rate increases in December to half a percentage point, after several three-quarter point increases.
Several participants in the meeting emphasized that it is necessary to “communicate clearly” that a moderation in rate increases is not a sign of weakening willingness to fight inflation.
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