The risk of persistent inflation mentioned by Jerome Powell favors supporters of a less accommodating monetary policy. (© AFP)
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In mid-December, the Federal Reserve could well spell the end of easy money in a context where inflation reached 6% on the other side of the Atlantic.
This is the eighth and last meeting of the year 2021, but it could be a milestone in the history of the markets.
On December 14 and 15, the twelve members of the Federal Reserve, including its president Jerome Powell re-appointed for a second four-year term, will meet to study the latest set of statistics and decide whether they should give a new direction to the Monetary Policy.
Already, on November 3, the central bank of the United States announced a reduction in its asset purchase program of $ 15 billion per month with the objective of ending it in June 2022, but without raising its key rates, inflation being considered “transitory”.
Persistent inflation
Since then, the discourse has evolved with, it is true, figures which do not militate in favor of a status quo, the rise in consumer prices having exceeded 6% over a rolling year, unheard of for thirty years. one year (in 1990, the price index jumped 6.1%). Jerome Powell himself agreed in the Senate that the term “transitional” was no longer suited to the situation and now refers to “the risk of persistent inflation”.
Therefore, the Fed could announce a stronger reduction in its asset purchases and consider, in the short term, an increase in its main key rate, maintained
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