The US Federal Reserve is about to raise interest rates again to fight inflation-

U.S. Treasury Secretary Janet Yellen said Sunday (Dec. 11, 2022) that inflation in the U.S. will fall sharply next year if there are no surprises.


Yellen said on CBS's "60 Minutes" op-ed that while there is a risk of a recession, a drop in inflation doesn't necessarily happen as a result of a recession.

The US Federal Reserve is about to announce another interest rate decision. The market predicts that the Fed will slow the pace of previous sharp interest rate hikes. After raising interest rates by 75 basis points four times in a row this year, the Fed expects to raise interest rates by only 50 basis points next.

In 2022, disruptions in global supply chains, Russia's invasion of Ukraine, stimulus fiscal policy in the United States, and other factors led to the highest level of inflation in the United States in four decades, as well as a sharp increase in the prices of many goods and services.

Inflation in the United States peaked in June, when the consumer price index, a measure of the average change in the cost of goods and services compared to the previous year, rose by 9.1%. In October, the index rose 7.7 percent, and although economists see it as an improvement, the numbers remain high.

The Fed's long-term goal is to maintain inflation at 2 percent a year.