Federal Reserve Governor Lisa Cook stated her commitment to curbing inflation, indicating she is prepared to act if price increases remain stubborn. While she advocates for observing inflation trends further, Cook believes risks are strongly weighted towards higher inflation due to factors like AI development, tariffs, and Middle East conflict.
Cook estimates headline inflation for this year will be one percentage point higher than previously anticipated, with US consumer inflation currently at 3.5 percent, above the Fed's 2 percent target. Resumed hostilities in the Middle East are also pushing oil prices higher, potentially sustaining inflationary pressures.
The Fed's rate-setting committee is scheduled to meet on July 28-29. Such hawkish signals from the Fed could strengthen the US dollar and potentially put downward pressure on international gold prices, which could then influence local gold and currency rates in Pakistan.
بحوالہ / Source: www.brecorder.com