The Cleveland Fed President Beth Hammack crossed the wires once more in Fox Business, stating that the job market is broadly in balance, while adding that “we need restrictiveness in policy.” Key highlights: The job market is broadly in balance – Fox Business It’s time to act;…
need restrictiveness in policy. I expect slow progress on inflation, should end year around 3%
Next year inflation might ease to around 2.5% at best. Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment.
Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money.