Despite the developments in Ukraine, “I don’t think you will see a major change in the basic logic. But this is uncharted territory, so we have to see where the world goes.”
In January, inflation reached 7.5% in the United States, the highest level since February 1982, exceeding analysts’ expectations (7.3%).
Federal Reserve Chairman SAT. Lewis, James Bullard, spoke on February 14 about a faster pace in raising the benchmark interest rate, noting that during October of last year and January 2022, “any idea that this inflation would have naturally eased in a reasonable period without takes action.”
Russian military action in Ukraine is not good news Prices of products and services .
Considering that oil prices reached their highest levels in eight years and further disruptions to global supply chains in the wake of the Russian invasion, it is not inconceivable that prices will continue to rise.
Loretta Meester, chair of the Federal Reserve Board in Cleveland, commented that what happened in Ukraine could have an impact on the US economy in the medium term and should be taken into account when setting interest rates.
These geopolitical events could exacerbate inflation and hurt economic growth in the short term, added Meester, who this year held a vote on monetary policy decisions at the Federal Reserve.
“The implications of the unfolding situation in Ukraine on the medium-term economic outlook in the United States will also be considered in determining the appropriate pace of stimulus removal,” Meester said at a virtual event hosted by the Lyon Companies and the University of Delaware. .
With information from Reuters
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