This Federal Reserve Bank of the United States (fed) don’t mind downloading interest rates throughout 2023 According to the minutes of his last monetary policy meeting in mid-December, despite the fact that an economic recession in the country has opened the door to be considered a “reasonable” scenario.
“No participant expected that it would be appropriate to start a rate cut in 2023.. Participants generally stated that it would be necessary to maintain a restrictive policy. “Until new data gives confidence that inflation is at a sustained rate of decline towards 2%,” the document said.
Despite this assessment,Central bankers estimate that the possibility of a recession “within the next year” is a “reasonable” alternative. according to the current baseline scenario. This is due to a combination of lower household spending, slower global economic growth and tough financial conditions.
At its December meeting, the Fed had predicted that the pace of monetary policy tightening would slow down next year due to the large increases in money prices in 2022. But the Fed insisted on this. Interest rate hikes would stop or even go down.
According to the document, “participants considered it appropriate to consider the cumulative tightening of monetary policy, the delay in monetary policy’s impact on economic activity and inflation, and economic and financial developments”.