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How will the Federal Reserve respond to surging US inflation?
Market Questions is the FT’s guide to the week ahead
World Economy News
16 May 2021 • 4 min read
The Fed is under renewed pressure to tighten its ultra-loose monetary policy after data last week showed US consumer prices rose at their fastest pace since 2008 in the 12 months to April, exceeding economists’ expectations.
The inflation jump came ahead of the release of minutes of the central bank’s most recent meeting, out on Wednesday, that will give investors greater detail on the Fed’s plans to guide the nation’s economic recovery from the pandemic.
How will the Fed respond to the surge in US inflation?
How will the Fed respond to the surge in US inflation?
After the release of the data last week, the Fed is facing new pressure to tighten and ultra-loose monetary policy. display In the 12 months to April, US consumer prices rose at the fastest rate since 2008, exceeding economists’ expectations.
Prior to the release of the minutes of the latest central bank meeting on Wednesday, inflation soared, which will provide investors with more detailed information about the Fed’s plan to guide the country’s recovery from the pandemic.
Chairman Jay Powell (Jay Powell) Reiterate After the policymakers’ meeting in late April, the Fed is still “a long way from withdrawing any monetary support.” In addition, he and other committee members have made it clear that they will allow inflation to temporarily exceed the central bank’s long-term target of 2%.