“Fed should act to control inflation expectations”

Inflation in the United States will drive the risk of launching a more permanent level if the Federal Reserve (Fed) does not agree to check the current rate of high prices, said March the president of the Fed of Atlanta, Raphael Bostic.

“Prices above the prices, in its majority induced by the pandemic, could prolong it sufficiently to fundamentally alter the expectations” and make under real inflation, said Bostic in a text published by the Fed of Atlanta.

If the expectations are well met, he has raised critical levels, the official says that there is a “real duty” if the companies and the higher authorities act as if an annual inflation rate were to be determined here, and justify all his interests .

On the other hand, Patrick Harker, President of the Fed of Philadelphia, says that the body can have its own interests in this year and that acts of more aggressive action are not mitigating factors such as the problems of the suministro.

“At the moment, I believe that the 25 base points will be increased this year,” said the official during an interview with Bloomberg TV.

“But there is a lot of risk here,” including the probability that inflation will be lower than expected, or that it will decrease more rapidly than what Fed officials prevent, he said.



Reference-www.eleconomista.com.mx

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