New Delhi, 17 March 2022

As per news report of The Indian Express, The Fed projected that its policy rate would hit a range between 1.75 per cent and 2 per cent by year’s end, arguing that the ongoing increases will be appropriate to curb inflation, the highest in 40 years at 7.9 per cent in February. It also cited the war in Ukraine as creating additional upward pressure on inflation, with global commodity prices remaining elevated. Federal Reserve Chairperson Jerome Powell said at a press briefing that inflation is expected to start cooling off by the second half of the year and fall to its target level of 2 per cent by 2024. The strong US economy should be able to expand even with a less accommodative monetary policy. “All signs are that this is a strong economy, indeed, one that will be able to flourish, not to say withstand, but certainly flourish in the face of less accommodative monetary policy,” he said.

Source - The Indian Express

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