La Fed ve necesaria una subida de tipos si la inflación no se modera

The Federal Open Market Committee voted to raise interest rates in July, according to the central bank's minutes. The United States Federal Reserve believes an increase in interest rates is necessary if inflation does not moderate, as stated in the summary of the latest central bank meeting held in July. Many participants believed that the monetary policy may need to be tightened if inflation fails to decrease, the meeting summary states.

Some participants mentioned that current financial conditions might not be restrictive enough to allow inflation to return to 2%. Finally, the Federal Open Market Committee voted 9-3 to keep the federal funds rates in a range between 3.5% and 3.75%. Those voting against the decision favored a 0.25% increase in the cost of money.

These were three regional presidents: Beth Hammack from Cleveland, Lorie Logan from Dallas, and Neel Kashkari from Minneapolis. In their opinion, this would help avoid the need for more drastic adjustment measures in the future. The most recent US price data shows inflation well above the Fed's 2% target. The central bank's main inflation indicator, the Personal Consumption Expenditures Price Index, fell by 0.1% in June, though the annual rate remained at 3.7%.

Labor market data showed signs of weakness that had not been previously observed, as companies unexpectedly cut their workforces in July and two previous months' hiring was revised downward. After the July meeting, the Federal Reserve chairman, Kevin Warsh, argued for patience regarding interest rate changes, which markets interpreted as a moderate stance on inflation.

This, in turn, caused a sharp increase in the yields of Treasury bonds. Warsh also mentioned the possibility of reducing the Fed's eight meetings per year to six, which would allow for more information accumulation between meetings compared to the current practice and provide policymakers and staff more time to consider strategic monetary policy issues.