La Fed augmente les taux d'intérêt pour lutter contre l'inflation : un éclairage sur la volatilité économique

Paragraph 1: Fed Raises Interest Rates to Highest Level in 22 Years

The US Federal Reserve has raised interest rates to their highest level in 22 years as it continues to combat inflation. The decision to increase rates by a quarter-percentage point to a range of 5.25% to 5.5% comes after the Fed paused its rate-rising cycle last month. The US economy has remained strong despite the 11 rate rises implemented by the Fed, with hiring slowing but remaining robust and the unemployment rate close to a record low. US inflation has declined for 12 consecutive months and is currently running at an annual rate of 3%, down from over 9% in June last year. The Fed has been raising rates in an effort to cool the economy and bring prices down. Fed chair Jerome Powell stated that the central bank would closely monitor economic data ahead of its next meeting in September. He noted that it was possible that rates could be raised again at that meeting if the data warranted it, but also stated that they may choose to hold steady.

Paragraph 2: Concerns over Inflation and Rate Rises

Some Fed officials have expressed concerns that recent declines in the pace of price rises may be temporary. Fed governor Christopher Waller stated that while the last inflation report was encouraging, policy decisions needed to be made based on more than just one data point. Waller also warned that the full impact of the rate rises may not yet be apparent in the economy and that the US could face a moment where the effects suddenly take hold.

Paragraph 3: Impact on Mortgage and Loan Rates

The rate rises have led to increases in mortgage rates and car loan prices, making it more difficult for Americans to obtain credit. The average long-term US mortgage rate climbed to just under 7%, the highest level since November. The rejection rate for credit applicants in June increased to 21.8%, the highest level since June 2018, with auto loan rejection rates reaching a record 14.2%. The Fed's actions have put the focus back on the Bank of England, which has faced criticism for its inability to control inflation. UK inflation stood at 7.9% over the same period, highlighting the challenge facing the Bank of England as it tries to keep price rises in check.

Today's concept is The Daily Lightning:

The concept of "The Daily Lightning" refers to the idea that economic conditions and factors can change rapidly and unexpectedly, much like a bolt of lightning. The article highlights how the US Federal Reserve's decision to raise interest rates is aimed at combating inflation and cooling down the economy. However, there are concerns among some Fed officials that the recent declines in the pace of price rises may be temporary and that the full impact of the rate rises may not yet be apparent. This concept emphasizes the dynamic nature of the economy and the need for policymakers to closely monitor economic data and make decisions based on a comprehensive understanding of the situation. Just as lightning strikes suddenly and can have significant effects, economic conditions can change quickly, requiring swift and well-informed actions to effectively manage them.