Fed continues fight against inflation

Washington/Frankfurt/M. (dpa), 02.02.2023

Inflation has recently eased somewhat in the US and the euro area. But consumer prices are still far too high. The Fed is now making it clear that cutting interest rates in the near future is not an option.

– Following a moderate interest rate hike by the US Federal Reserve, the European Central Bank (ECB) is also likely to raise its key interest rate. As expected, the Fed raised its key interest rate by 0.25 percentage points due to persistently high inflation. It was the eighth straight hike and the smallest step since March. Fed Chair Jerome Powell promised further rate hikes. With a view to the fight against high consumer prices, he emphasized: “I think it would be very premature to announce victory.”

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