This Tuesday the Bureau of Labor Statistics will publish at 9.20 am ET (GMT -3), the consumer price index. This information will provide information on the recent levels of the evolution of inflation.
Effects on the recovery of the economy have been seen for a few weeks, after the economic stimuli approved during the Republican Administration and the new stimuli implemented by the government of J. Biden.
The measures have an effect on the different indices, including the increase in employment and inflation. Projections for the CPI point to an increase from last month, up 0.5% from 0.4% the previous month.
Speculation has been generated about the modification of the US Interest Rate.
Jerome Powell, president of the Fed in an interview published this Sunday, to appease speculation, announced that no action will be taken on the current interest rate. Considering that the economy is at a “inflection point”, they are not willing to change their current policy of interest rates and the monthly purchase of bonds of 120,000 million dollars.
Policy changes are expected when job creation is higher and the CPI exceeds 2% and is sustained, without agency intervention.
According to Powell, the US economy is on the verge of remarkable growth and overcoming the effects of the recession caused by the current pandemic. However, the reopening and the end of the confinements, accompanied by the economic rebound, if not taken with caution, may cause new sources of spread that generate a setback. Therefore, he calls this period an inflection point.