Vertiv Introduces New Single-Phase Uninterruptible Power Supply for Distributed Information Technology (IT) Networks and Edge Computing Applications in Europe, Middle East, and Africa (EMEA)Read more Students from JA Zimbabwe Win 2023 De La Vega Global Entrepreneurship AwardRead more Top International Prospects to Travel to Salt Lake City for Seventh Annual Basketball Without Borders Global CampRead more Rise of the Robots as Saudi Arabia Underscores Global Data and Artificial Intelligence (AI) Aspirations with DeepFest Debut at LEAP23Read more Somalia: ‘I sold the last three goats, they were likely to die’Read more Merck Foundation and African First Ladies marking World Cancer Day 2023 through 110 scholarships of Oncology Fellowships in 25 countriesRead more Supporting women leaders and aspirants to unleash their potentialRead more Fake medicines kill almost 500,000 sub-Saharan Africans a year: United Nations Office on Drugs and Crime (UNODC) reportRead more Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more

US growth slowdown ‘required’ to beat inflation: Fed minutes

show caption
US Federal Reserve officials said inflation has 'not yet responded' to increased interest rates./AFP
Print Friendly and PDF

Oct 13, 2022 - 06:57 AM

WASHINGTON — A slowdown of economic growth and the US job market will be “required” to bring down inflation, the Federal Reserve said in notes released Wednesday, adding that prices remain “unacceptably high.”

Fed officials also said inflation has “not yet responded” to increased interest rates, according to minutes of the US central bank’s September meeting, and that “a significant reduction in inflation would likely lag that of aggregate demand.”

In September, the Fed’s policy-setting Federal Open Market Committee (FOMC) increased the key interest rate by 0.75 percentage point for the third consecutive time, continuing its forceful action to tamp down inflation, which has surged to the highest level in 40 years.

On Tuesday, US President Joe Biden admitted there was a chance the country could suffer a “slight” recession, when asked about fears for the economy amid gloomy growth projections.

But some of the Fed officials cited in the minutes also noted that “it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook.”

Several of the officials added that “the cost of taking too little action to bring down inflation likely outweighed the cost of taking too much action.”

Participants also noted their strong “commitment to returning inflation to the committee’s two percent objective.”

The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index, showed the annual pace of price increases slowed slightly in August.

Another measure of price increases, the CPI index, will be published Thursday morning for the month of September.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.