Washington (awp/afp) – The majority of US central bank (Fed) officials were in favor of a quarter-point rate hike on February 1, which was decided, but some would have preferred a bigger hike , according to the minutes of that meeting, released Wednesday.
“Almost all participants agreed that it was appropriate to raise (…) rates by 25 basis points (0.25 percentage point, editor’s note)”, but “a few participants” were “in favor” of an increase stronger, by half a point, is written in the minutes of this meeting.
All, however, voted for the quarter-point raise, and the decision was made unanimously.
In addition, “all participants” anticipate additional increases in the face of persistent high inflation in the United States, sweeping away hopes of an upcoming break.
And, while economic activity is expected to slow in the coming months, due to these rate hikes which aim to curb high inflation, “some participants noted that the probability of the (US) economy entering a recession in 2023 remains high,” according to the minutes.
The meeting held on January 31 and February 1 was the first of the year for the Fed, which then raised its rates by a quarter of a point. It was a return to a more usual rise, and a slower pace, after two half-point increases and four three-quarter-point increases since May.
We are seeing “the beginning of disinflation”, underlined the chairman of the Fed, Jerome Powell, while pointing to “inflation (which) remains high”, and the tightening of monetary policy takes time to fully take effect. .
Thus, “although recent developments are encouraging, we will need more evidence to be convinced that inflation is slowing down for a long time”, he had hammered.
The rise in consumer prices in the United States fell in December to 5.0% year on year, against 5.5% in November, according to the PCE index.
PCE inflation, an index the Fed wants to bring back to around 2% year on year, fell in December to 5.0% year on year from 5.5% the previous month, and January data will be released on February 24. .
But another measure of inflation, the benchmark CPI index, showed only a slight slowdown in January, to 6.4% over one year, against 6.5% in December, even accelerating over one month for the first time since September, at 0.5% against 0.1%.
afp/rp
