The Federal Reserve of the United States of America (FED) began its last meeting of the year in Washington today to resolve the adjustment to its reference interest rate, given financial market expectations and the awaited consumer inflation data for November. With which to evaluate the fit.
The chairman of the FED, Jerome Powell, will lead a meeting of the Federal Open Market Committee (FOMC) in which the various chairmen of the regional FEDs are divided.
Some officials are inclined to maintain an accommodative monetary policy and adjust the rate to 75 basis points, while another part of the board, including Powell, was in favor of reducing the hike to 50 basis points.
In the market, most investors, operators and analysts adhere to the latter position, although everything will depend on the consumer inflation data for November which will be published today.
Investors and economists widely anticipate it will raise its benchmark interest rate above 4% for the first time since 2008.
The Fed’s benchmark rate currently sits between 3.75% and 4%, up from near zero last March, and marks the fastest increase since at least 1990 and the rate is expected to rise by another half a percentage point. are supposed to.
Last Friday, wholesale prices in the United States fell significantly in November and registered a gain of only 0.3% compared to October and 7.4% compared to November 2021.
US household inflation expectations for the coming year fell last month to their lowest level since August 2021, according to a New York Fed survey.
According to the results of the New York Fed’s monthly survey of consumer expectations released yesterday, they expected inflation of 5.2% over the next 12 months, up from 5.7% last month.
Fed officials have tightened monetary policy aggressively this year in an effort to keep expectations in check, even as real inflation has risen to its highest level in four decades. (Telam)