ANALYSIS – Certain indicators concern Jerome Powell, the president of the American central bank who should not follow the movement initiated last week in Europe by the ECB.
The American economy continues to leave experts perplexed. Among them, the leaders of the Federal Reserve who are holding their last spring meeting this Wednesday. Their perplexity should lead them to choose a wait-and-see attitude and not lower their key rate while in Europe, the ECB began the movement last week.
In 2024, so far, the highly anticipated scenario of a soft landing in inflation, without a surge in unemployment, promised by President Biden, and deemed probable by the Fed in January, has not been confirmed. On the contrary, inflation is no longer falling while, conversely, unemployment is rising slightly in the paradoxical context of surprisingly high job creation. The consumer price index even rose to 3.4% in April (over one year) compared to 3.1% in January. The figure for the month of May will be published Wednesday morning.
Read alsoECB rate cut: a breath of fresh air… full of uncertainty
The Fed’s key rate has been maintained between 5.25% and 5.50% since July 2023. It’s supposed to be restrictive enough…
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