The Federal Reserve (the US central bank) warned, on Wednesday, that the United States will face “widespread” inflationary pressures, in the wake of statements by its chairman, Jerome Powell, that caused turmoil in the stock markets, according to the French news agency “Agence France Presse”.
Powell had warned earlier that the Federal Reserve is ready to accelerate the pace of raising interest rates, indicating that the authority may deliberately raise the interest rate more than expected if necessary.
The Federal Reserve indicated, on Wednesday, that its survey of economic conditions in the United States indicates a slight to moderate increase in employment in most regions in which it has federal banks, while labor market conditions remain solid.
The Federal Reserve has 12 banks charged with implementing the central bank’s monetary policy in 12 regions, according to “Agence France Presse”.
On an annual scale until February 27, overall economic activity recorded a slight increase, as data for six of the 12 Federal Reserve banks showed a slight acceleration in the pace of activities, while the reports of the other six banks were limited to a marginal increase.
Several Federal Reserve banks reported a rise in price inflation, with persistent inflationary pressures recorded in New York, and a “significant” increase in residential rental costs in Kansas City.
Inflation remains above the 2 percent rate that the Federal Reserve seeks in the long term, despite a tightening monetary policy campaign that has raised interest rates to levels not seen since the global financial crisis.
During a Senate hearing on Tuesday, Powell said the job market remains “very tight.”
And more than half a million jobs were created last January, which led to a decline in the unemployment rate in the country to its lowest level since the sixties of the last century.
