The Federal Reserve kicked off its monetary policy meeting

The monetary entity is expected to discuss the price increase that has been registered in the US. As well as the impact of the Delta variant

The Central Bank of the United States (Fed) is addressing, from this Tuesday, July 27, the monetary policy of the nation and where it is expected that they will analyze inflation and the risks that repesents the Delta variant of the coronavirus.

The economic recovery in the US for this year could be seriously impacted by the increase in the Delta variant, which has triggered Covid-19 infections in many regions of the world.

It is estimated that one of the main points of this meeting is the discussion and review of the increase in prices, stronger than expected, registering its highest rate in 13 years.

Another important aspect to be considered by the Fed is inflation, which during June registered 5.4 %, according to the CPI index, a fact that continues to cause great concern, since the trend is expected to extend over several months.

Jerome Powell, the chairman of the Fed, has repeatedly explained that the increase in inflation is “temporary and then inflation will be channeled to lower levels.” Like many economists, Powell estimates that inflation will stabilize in the medium term and the Fed has set a target in the 2 % range.

This policy coincides with the one recommended by the International Monetary Fund (IMF) to central banks: “continue with a monetary policy approach based on figures,” explained Koeva Brooks, deputy director of the IMF at a press conference.

The international institution, which published its updated economic forecasts on Tuesday, recommended that central banks maintain their support for the economies, without trying at this time to counteract the rise in prices with a tightening of their monetary policies.

M. Rodríguez

Source: diariolasamericas.com

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