On Wednesday evening, the US central bank, the Federal Reserve, Fed, raised the key interest rate by 0.25 percentage points to a range of 4.50-4.75.
During the press conference that followed the interest rate announcement, Fed chief Jerome Powell emphasized that the full effect of the tightening measures taken to tame inflation has not yet fully taken effect, which is why further interest rate hikes may be expected.
Powell also said there is a risk of doing too little – rather than going too far.
- All this sounds very hawkish.
He is on a tough line, where he believes that we must raise the interest rate to scare away inflation.
Positive news for Sweden
At the same time, prices have started to come down, and Powell also did not talk about how quickly interest rates should be raised.
- If this is to be interpreted as dovish, that is to say that the interest rate peak may be reached soon in the USA, then it is positive news for us in Sweden - if we hope that our interest rate will also stop rising soon.
Hear more of Alexander Norén's analysis in the clip above.