Expert analysis | The effectiveness of US monetary policy is not ideal, and it is difficult to achieve the anti inflation target
On September 20th local time, the latest minutes of the Federal Reserve's monetary policy meeting showed that the Federal Reserve has decided to slow down the pace of interest rate hikes in September and maintain the target range of the federal funds rate between 5.25% and 5.50%.
Although the Federal Reserve has decided to suspend interest rate hikes, the high interest rate monetary policy implemented by the US Federal Reserve in this round of interest rate hikes has not quickly brought the US inflation level back to the target value of 2%. Let's take a look at expert analysis on how the US economy and inflation level will develop in the future, and whether the US economy and social issues will further affect the US inflation level.
Li Fuyi, Associate Researcher at the Institute of Foreign Economics at the Chinese Academy of Macroeconomics: From the current performance of the US price level, the Federal Reserve has entered the second half of the anti inflation phase, but the latter half has not been very smooth. In the coming period, it will be very difficult for the price level in the United States to return to the 2% regulatory target.
Long - and short-term factors will continue to push up US prices and production costs
Li Fuyi, Associate Researcher at the Institute of Foreign Economics of the Chinese Academy of Macroeconomics: There are both short-term and long-term factors here. From a short-term perspective, one of them is that the rise in energy prices brings about an increase in prices. The current series of strikes has also pushed up the overall production costs of the US manufacturing industry. The current strike by workers from the three major automobile giants that are attracting worldwide attention may result in a loss of 1.5 million cars in the United States, especially in the automotive manufacturing industry, which is the largest part of the overall manufacturing sector and accounts for a considerable proportion of the US GDP. There are a large number of industrial chains and small and medium-sized enterprises, so it has a significant impact on the resilience of the overall supply chain industry chain in the United States, ultimately reflected in the prices of goods in the United States.
![Expert analysis | The effectiveness of US monetary policy is not ideal, and it is difficult to achieve the anti inflation target](https://a5qu.com/upload/images/dfc51044ff37b82469fb4cc223a9421a.jpg)
The United States disrupts global industrial and supply chains, backfires on itself
Li Fuyi, Associate Researcher at the Institute of Foreign Economics of the Chinese Academy of Macroeconomics: Lastly, long-term factors have led Americans to artificially change the direction of global industrial and supply chains, which actually violates the objective laws of market resource allocation and ultimately leads to an increase in the cost of goods and imported goods in the US market.