United States does not intend to rush to decrease in interest rates in Fed

The latest data on the US economy indicate a lack of progress in achieving the goal of inflation at 2 percent, so it takes more time before the federal reserve system (FRS) will be able to reduce interest rates.

This was stated by the head of the Fed Jar Powell at the Economic Forum in Washington. At the same time, he pointed out that last year the US economy showed quite strong indicators.

It was possible to achieve more than 3 percent growth, since the increase in the proposal contributed to severe economic growth, expenses and employment, as well as a significant decrease in inflation, the head of the Fed.


Powell also noted an improvement in the labor market. Polls of employees and owners of enterprises show that the labor market is normalizing, he said.

, according to estimates, the main index of costs for personal consumption, one of the important data studied by the Fed has changed slightly in March – by 2.8 percent in the annual calculus, said the head of the agency.

Three- and six-month inflation indicators, according to Powell, were higher than this indicator.

However, the Fed needs more confidence that inflation will steadily approach the mark of 2 percent before softening a monetary policy, he stressed.

For now, react to low inflation data received in the second half of last year, too early, is convinced by the head of the Federal Agency.

At the same time, Pa, is sure that monetary policy is able to cope with the risks that he faces.

If high inflation is preserved, the Fed will retain the current level of restrictions as much as necessary, he said.

Canadian manager Tiff Maclem, in turn, said at the forum to reduce inflationary pressure.

In the first quarter, the country’s economy began to recover, and presumably GDP will continue to grow throughout the year, the head of the Canadian regulator said.

“There is a certain tendency to reduce inflation. I believe that this suggests that an excessive offer arose and price pressure has decreased. But we, of course, are looking for evidence that the trend will be stable,” he added.