Delighted by the return of inflation, the Fed does not accelerate the credit crunch

Inflation is back, long live inflation ! It’s at the bottom of the message that was passed Wednesday, may 2, the u.s. federal Reserve (Fed), which has chosen not to go back more quickly than expected interest rates. They have remained between 1.5 % and 1.75 %, having been increased a quarter point in march. In a press release that delighted the scholars, the institution presided over by Jerome Powell has de facto meant that the absence of inflation was no longer an issue, and she would without a doubt let go the price increases beyond 2 %.

The return of inflation had been recognised, Monday, April 30, when the commerce department indicated that the increase in prices on a year had reached 2 % in march from 1.6% in February. So is it put an end to the incredible stagnation of 2017 who had left cautious Janet Yellen, then chair of the Fed, even if an explanation had been found with the lower price in the pharmacy, and telecommunications. However, the relief is sharp. The shortage of labour, finally, allows the wages to rise at a rate of 2.9 %. The never-seen since 2008.

Like this post? Please share to your friends:
Leave a Reply