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The Federal Reserve may surprise the markets

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The Federal Reserve may surprise the markets

A string of worrying inflation reports will prompt US Federal Reserve officials to consider surprising money markets with interest rates up 0.75 percent higher than expected at their meeting this week.

Council officials said they were prepared to raise interest rates by half a percentage point this week, and that their future outlook for the next July meeting would depend on the growth of the economy, especially in May, when prices soared higher than expected from the Labor Ministry’s inflation report.

The Federal Reserve raised interest rates by half a percentage point at its meeting last month, raising them from 0.75% to 1% since 2000. At the 1994 meeting, interest rates also rose by 0.75 percentage points.

In turn, US Federal Reserve Chairman Jerome Powell avoided surprising the markets, pointing out that instead the central bank could achieve its monetary policy austerity targets. He said it is guided by economic data.

He continued, “What we need is clear and convincing evidence that inflation is declining.” If we do not see it, we will have to think about moving more aggressively, ”he added.

For its part, the Ministry of Labor said last Friday that its consumer price index rose 8.6% in May.


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