It's too early to declare victory over inflation.

The US Federal Reserve (Fed) is expected to continue raising interest rates in July 2023 and still leave open the possibility of further interest rate increases between now and the end of the year.

The Fed left open the possibility of raising interest rates in the rest of 2023. (Source: Getty Images)

Fed policymakers left the door open to raising interest rates after an expected hike in July. While Fed officials saw positive signs from easing price pressures last month, they appeared to have no intention of declaring an end to their long-running battle to control inflation.

Consumer prices in June 2023 increased by just 3% compared to a year earlier, down from 4% in May. This was the lowest increase in the past 24 months and much lower than the 9.1% just a year ago.

However, some Fed officials have said it is too early to declare victory over inflation.

"Inflation also slowed briefly in the summer of 2021 before worsening; therefore, he wants to see sustained progress in controlling inflation before believing that inflation has decelerated," Fed Governor Christopher Waller stressed.

Investors are betting the Fed will raise interest rates this month, after pausing last month.

The agency has raised interest rates 10 times in a row since March last year, bringing the reference interest rate to 5-5.25%. This is the highest level in more than 15 years.

The Fed's next meeting will be on July 25-26.

Source: https://baoquocte.vn/quan-chuc-fed-con-qua-som-de-tuyen-bo-chien-thang-lam-phat-235064.html