Michael Barr, a member of the Board of Governors of the US Federal Reserve, announced that the central bank may need to raise interest rates again to address persistent inflation, just one week after it cut rates for the first time in over three years.
The US newspaper 'The Hill' quoted Barr on Thursday as saying during a summit on housing affordability hosted by the bank in Chicago: "It is likely that further adjustments in monetary policy will be needed to ensure inflation reaches its target in a timely manner."
In the same context, Barr pointed out that the decision to lower the benchmark interest rate by a quarter of a percentage point, which the bank adopted unanimously, was "correct," given that inflation remains above the bank's 2 percent target and is not clearly heading toward this target in a timely manner.
For his part, Minneapolis Federal Reserve Bank President Neel Kashkari affirmed last Sunday that inflation in the United States remains high across various sectors of the economy and is not limited to rising oil and energy prices.
Barr added that the central bank seeks to support sustainable growth and maintain the highest possible employment levels, noting that price stability is "crucial" to achieving this goal.
The interest rates announced by the US Federal Reserve are the most important global monetary tool for steering the global economy, determining the cost of money in international markets, combating inflation, and setting the cost of borrowing.
This cautious approach reflects concerns about the persistence of inflationary pressures, placing the bank before challenges in balancing support for growth with combating the continuous rise in prices.
Source: Syrian Arab News Agency (SANA)
Comments (0)