The US Federal Reserve should limit its rate hike to 0.25% in the face of more moderate price growth.
Washington Correspondent
The US central bank thinks the time has come to ease off on the back of easing inflation. For several weeks, its most senior officials have suggested that it will raise its key rate on Wednesday by only 25 points. This would mark a moderation compared to the increase of 50 points practiced in December, and in view of four increases of 75 points decided from June to November. Since the US Federal Reserve abandoned its zero key rate policy in March 2022, the fed funds rate has risen from zero to 4.50%. This price at which the Fed lets banks lend money to each other in the very short term will therefore probably be increased to 4.75% on Wednesday evening.
Two main reasons argue for the slowdown in US monetary tightening. The first is inflation moderation. The Fed belatedly embarked on a normalization of its policy last March, after realizing that the acceleration…
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