New York Fed The Federal Reserve has more to do to bring inflation back to 3%, chief executive John Williams said on Monday. He explained that although inflation will return in 2023, they still have a lot to do.
Koinfinans.com As we reported, Williams shared his predictions for the near future in his speech to the US Hispanic Chamber of Commerce in Phoenix, commenting, “All these factors should contribute to a decrease in inflation to about 3% next year.”
To remind you, in August, inflation in the USA had risen to 6.2%. The steep rise was reined in after a while, but higher levels could still mean another rise in interest rates, damaging the global economy. The Fed is still far from its 2% target for inflation.
With the tight monetary policy implemented, both interest rates and mortgage rates rose due to inflation. According to Williams, overall spending, including on homes, began to decline further. This is due to the increase in prices and interest rates.
“Tighter monetary policy has begun to cool demand and reduce inflationary pressure, but we are not done yet. We need time, but I am completely confident that we will return to a period of sustainable price stability.”
If you are looking for a detailed guide on the relationship between cryptocurrencies and interest/inflation, “Investing in a World with Rising Interest Rates – What Strategy Should Be Established?” You can check our article.
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