August 09, 2022 01:48 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Split between Nitish Kumar's JD(U) and BJP on cards? Decision tomorrow | India's badmin icon PV Sindhu clinches maiden CWG women singles gold | NIA officials raid in Doda, Jammu | India records 18,738 new Covid-19 cases in last 24 hours | Mobile internet services suspended in Manipur after protest over contentious bill
Fed on way to bigger action as inflation soars in US Federal Reserve | US
Image credit: Wikimedia .org

Fed on way to bigger action as inflation soars in US

India Blooms News Service | @indiablooms | 13 Jun 2022, 10:12 pm

Washington: Amid soaring inflation, the US Federal Reserve is likely to hike key policy rates to help mitigate price increases that are showing no signs of cooling, media reports said.

The Fed is expected to increase interest rates as the consumer prices in May hit a new high, jumping 8.6 percent, topping what the economists thought was the highest in March, AFP reported.

The soaring inflation is increasing the woes of American householders and challenging Joe Biden's presidency.

As the Russia-Ukraine war continues to pressure global food and fuel prices and Covid-19 lockdowns in China create supply chain uncertainties, the inflationary pressures may take much longer to ease, say analysts, the report said.

Though the US central bank has already signalled a much bigger increase in benchmark borrowing rates this week and next month, analysts think the Fed may have to be more aggressive, adding that it may increase the risk of the economy getting into recession.

The latest report on inflation ahead of the Fed's policy meeting on Tuesday and Wednesday also puts off hopes of cooling down in September just before the key congressional elections, where Biden's Democrats are widely expected to face setbacks.

Prices of groceries, air travel, housing and new and used vehicles have continued to rise, setting new records, according to Labor Department data.

According to the data, energy has skyrocketed by 34.6 percent in the past one year, the fastest since 2005, food 10.1 percent, fuel oil price doubled rising 106.7 percent, the largest jump since the CPI was first recorded in 1935.

Related Images
FOHMA addresses press conference 01 Jan 1970, 05:30 am
Related Videos
PM Modi on Union Budget 2022-2023 01 Feb 2022, 06:28 pm
IBNS Live Business Chat 30 Dec 2021, 05:53 pm