U.S. inflation remains too fast despite progress in recent months, a top Federal Reserve official said Saturday. :format(webp)/nginx/o/2022/02/09/14356262t1h44f2.jpg)
The Wall Street Bull. Illustrative photo. Photo: CARLO ALLEGRI
U.S. inflation remains too fast despite progress in recent months, a top Federal Reserve official said Saturday.
The US central bank is keeping interest rates at their highest level in two decades in an attempt to bring inflation back to its long-term target of two percent.
The annual rate of inflation in the U.S. has slowed to 2.5%, well below the peak reached in 2022, while the economy continues to grow and the labor market has weakened somewhat.
Federal Reserve Chairman Jerome Powell said in late July that the central bank could begin raising its benchmark interest rate as early as September if economic data meets expectations.
Other central bankers, however, were more cautious when talking about key rates.
"The progress in slowing inflation in May and June is encouraging. However, inflation remains above the 2 percent target," Federal Reserve Board member Michelle Bowman said at a conference in Colorado Springs.
She added that inflation is expected to slow further in the coming months, but the Fed will be patient to avoid undermining progress by overreacting to individual data.
