(Washington) The majority of US central bank (Fed) officials were supportive on 1er February, to a quarter-point rate hike, which was decided, but some would have preferred a higher rise, according to the minutes of this meeting, published on Wednesday.
“Nearly all participants agreed that it was appropriate to raise […] rates of 25 basis points [0,25 point de pourcentage] “, but “some participants” were “favorable” to a higher increase, of half a point, it is written in the minutes of this meeting.
All, however, voted for the quarter-point raise, and the decision was made unanimously.
Moreover, “all participants” anticipate additional increases in the face of persistently high inflation in the United States, sweeping away hopes of an imminent pause.
And while economic activity is expected to slow in the coming months, due to these rate hikes aimed at curbing high inflation, “some participants noted that the likelihood of the economy [américaine] going into recession in 2023 remains elevated,” according to the minutes.
The meeting which took place on 31 January and 1er February was the first of the year for the Fed, which then raised its rates by a quarter of a point. It was a return to a more usual rise, and a slower pace, after two half-point increases and four three-quarter-point increases since May.
We are seeing “the beginning of disinflation”, underlined the President of the Fed, Jerome Powell, while pointing to “the inflation [qui] remains high”; as for the tightening of monetary policy, they take time to make their full effects felt.
[Ainsi] although recent developments are encouraging, we will need more evidence to be convinced that inflation is slowing down sustainably.
Fed Chairman Jerome Powell
US consumer price inflation fell to 5.0% year on year in December from 5.5% in November, according to the PCE index.
PCE inflation, an index the Fed wants to bring back to around 2% year on year, fell in December to 5.0% year on year from 5.5% the previous month, and January data will be released on February 24 .
But another measure of inflation, the benchmark CPI, showed only a slight slowdown in January, to 6.4% year on year, from 6.5% in December, even accelerating over a month for the first time since September, at 0.5% against 0.1%.