Layel Bernard, Vice -President of the American Federal Reserve (Central Bank), said that the bank will reduce the pace of the main interest rates in the United States very soon, suggesting that the next increase in interest will be in the range of 50 basis points, after increasing the interest 4 times in a row by the amount 75 basis points each time.
Bloomberg news news agency quoted Bernard as saying in a discussion episode at the Agency’s office in Washington..
Bloomberg indicated that the US Central Bank raised the main interest rate from about 0% last March to between 3. 75% and 4% in an attempt to curb the inflation that reached its highest levels about 4 decades ago, adding that this is the strongest tightening course for monetary policy in eighties The twentieth century, the interest increased by 75 basis 4 times in a row.
The US Department of Labor data issued earlier this month showed that consumer prices in the United States increased during the past month with less than expectations.
The ministry’s report showed the consumer price index increased last October by 0. 4% per month, which is the same percentage of the increase in September. Analysts expected the index to rise by 0. 6%.
At the same time, consumer prices increased by 7. 7% annually, last October, after they increased by 8.
2% during the previous September. The annual inflation rate decreased during the past month to its lowest levels since last January, and it came less than the estimates of analysts, which were 8%.
The US Department of Labor said that the main index of consumer prices, which excludes the most volatile food and energy prices, increased by 0. 3% during the past month, after it increased by 0. 6% during the previous September. Analysts expected it 0. 5%.
The basic annual inflation rate during the past month was 6. 3% compared to 6. 6% during the previous September, while analysts expected a basic inflation rate of 6. 5% annually..
About Author
