Fed, Powell bows to Trump on rates – Repubblica.it

"There is no established path" in monetary policy ", we will pay particular attention to what economic and financial data tell us, and as always, our monetary policy decisions will be taken to maintain the economy on track, in light of the different perspectives related to employment and inflation, said Powell in the version "dove", according to which the interest rates are "just below" the neutral level. Last month, however, he had declared that the United States was "probably very far from a neutral level".

Italy is also among the uncertainties and the economy. The standoff between Italy and the European Union on the maneuver represents a possible "source of risk", among those "that can trigger tensions at any time". The gradual rise in interest rates is an exercise in balancing risks. We know that if we act too quickly, we risk compromising our expansion, but we know it too. If we act too slowly – keeping interest rates very low for too long – we risk creating new distortions, in the form of higher inflation or financial imbalances. "Our progressive progress has been designed to balance these two risks, which we must take seriously," added Powell: "We also know that the economic effects of our gradual increases are uncertain and may require one year or more to be fully realized ".

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