Jerome Powell, chairman of the US Federal Reserve has said, if higher inflation does persist, we can maintain the current level of for as long as needed.
The Institute for Supply Management (ISM) said that its manufacturing PMI was unchanged at 46.7 last month, below the 47.6 estimate of economists polled by Reuters. It was the 13th straight month the PMI stayed below 50, which indicates contraction.
The US Monetary Policy Committee eyes a potential tightening if inflation progress falls short. Despite maintaining the 5-1/4 to 5-1/2 per cent federal funds rate, focus remains on quelling consumer inflation at the 2 per cent target. Encouragingly, inflation is tapering, hitting 3.2 per cent in October. Policy stays restrictive until sustained inflation decline. Economic forecasts hint at a slower fourth-quarter GDP, attributed partly to a recent autoworkers strike. Below-potential growth and softening job conditions are seen as keys to easing inflationary pressures.
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