Jun 17th 2021
The Federal Reserve left interest rates on hold at its latest meeting, though there was a perceptible shift in the mood music. The central bank’s projections now suggest that rates will be lifted twice in 2023, a change from previous guidance that they would remain at record-low levels until the end of 2024. The US economy is recovering from the pandemic more quickly than had been thought.
Inflation sensation
The annual rate of change in Britain’s consumer price index jumped to 2.1% in May, from 1.5% in April. Inflationary pressures are increasing as economies return to business. Inflation in America also rose again in May, to 5%, the highest reading since August 2008.
With inflation running at 8%, Brazil’s central bank raised interest rates for the third time this year, lifting its benchmark rate to 4.25%.
A big factor driving inflation is rising energy costs. The price of Brent crude closed in on $75 a barrel this…
