On Wednesday evening, the central bank released a report on its September interest rate meeting. There they called the level of inflation “unacceptably high”.
– Today’s price growth is well above the 2 percent target and price growth shows little sign of abating. Several participants saw the need to maintain a restrictive position for as long as necessary. Inflation has not yet reacted to rising interest rates, the report said.
In September, the US central bank decided to raise interest rates by 0.75 percentage points – a so-called triple hike – to an interest rate range of 3.0-3.25 percent, the highest since 2008. In the minutes, the central bank predicts that the economy will slow down as interest rates rise, but notes that the job market is still very tight.
Unemployment in the United States is at 3.5 percent, the lowest in 50 years, while there is still strong demand for labor.
Central bank chief Jerome Powell made it clear that severe measures are needed to curb inflation. The official inflation data for September will be released on Thursday, which will have a major impact on the upcoming November interest rate meeting.
– It is almost as certain as the amen in the church that the US central bank will raise the benchmark interest rate by 0.75 percentage points at the next meeting on November 2, Dansk Erhverv chief economist recently told Ritzau news agency. , Tore Stramer.
(NTB)
