The US Federal Reserve. (Fed) announced a pause in interest rate increases this Wednesday, after the eleven consecutive increases which it has implemented since March last year, although it was not clear whether further increases will take place before the end of the year.
“The Committee would be prepared to adjust the monetary policy stance as necessary if risks emerge that could hinder the achievement of its objectives,” said the US central bank, which decided to keep interest rates at the current range of 5.25% and 5.5% to be maintained. highest level since 2001.
“We are maintaining the rate and waiting for more data. “We really want to see compelling evidence that we have reached the right level of rate hikes,” he said at a news conference after the Fed announced a pause in rate hikes following 11 consecutive hikes since March of the year. past.
“We’ve seen progress and we appreciate that. But you know, we need to see more progress before we’re willing to actually complete the climbs,” he said.
It is therefore not clear whether the Fed will increase slightly more in the two meetings it has before the end of the year October and December.
The Fed said in its statement that the Federal Open Market Committee (FOMC) will continue to evaluate additional information and its consequences for monetary policy.
The effects in Colombia and Latin America Given the decision, analysts such as Juan David Belén of Casa Bolsa SCB believe that as long as there is high inflation, the region will not think about lowering intervention rates, while the United States is thinking about more growth instead of interest rate cuts.
In Colombia, experts saw that if Fed cuts were to occur, the central issuer could also go under. “Whoever does it will strengthen the dollar,” said Juan David Belén.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
