Minneapolis Federal Reserve Chairman Neel Kashkari said Tuesday that he expects the US central bank to raise interest rates twice this year.
These statements reverse his long-held view that they would have to remain at zero until at least 2024.
“I anticipated two rate hikes to 2022 because inflation has been higher and more persistent than I expected,” Kashkari said in a Medium post.
In the opinions expressed in the portal, the president of the Minneapolis Fed, commented that the high inflation that consumers and companies currently experience will probably be temporary, a word that the Fed president himself, Jerome Powell, said that he no longer should use.
“I am giving more importance to the possibility that this high and transitory inflation could, however, lead to an increase in long-term inflation expectations above our 2% target,” he added.
The US Consumer Price Index reached 6.8% annually in November, reaching its 40-year high.
While, in monthly comparison, the increase in November was 0.8%, a slight improvement compared to the 0.9% observed in October.
Although the annual measure signals very high inflation, the month-over-month slowdown suggests that inflation may have peaked, according to an analysis by the Business Insider portal.
Reference-www.eleconomista.com.mx