The Federal Reserve warns of continued high inflation in America

Warn The Federal Reserve (the US central bank) ensures that Inflation is still high compared to the target level of 2%, noting that this partly reflects shocks to the level of supply, which pushed up prices in some sectors, including the energy sector.
He pointed out that economic activity is expanding at a strong pace despite increasing uncertainty, which is partly due to the conflict in the Middle East.
On Wednesday, Council members published the summaries of their economic forecasts, raising their estimates of personal consumption expenditure inflation by the end of the year to 3.6% compared to by 2.7% in March, while the largest economy in the world faces a rise in prices that reached the highest level in 3 years.

Pressures due to high prices

American families face severe pressures due to Prices rose more than expected, with inflation drifting away from the target rate of 2%, driven by a rise in energy prices against the backdrop of the war launched by President Donald Trump on Iran.
Before the outbreak of the war, markets were expecting at least one interest rate cut before the end of the year, with expectations turning to a rate hike at the Fed’s meeting in December.
On Wednesday, the Federal Reserve raised its forecast for interest rates by the end of the year, indicating that one increase on this level is expected by End of 2026.
Warsh had indicated that he wanted to limit what the reserve announced, and it was widely expected that the Council would refrain from announcing its expectations.
Wednesday’s statement was more brief than usual, and future guidance on the path of interest rates was deleted from it, after it had been a constant element in recent years.

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