The Fed

The monetary policy committee (MPC) of America’s Federal Reserve Bank has to conduct a delicate and complex balancing act. On the one hand they are responsible for maximising the growth of the US economy and on the other they must ensure the stability of the US dollar – in other words they must control inflation. These two objectives tend to be mutually

Oil and US Inflation

The US core personal consumption expenditure (PCE) price index is the Federal Reserve Bank’s (The Fed) preferred gauge to measure inflation in that country because it excludes both food and energy prices. The PCE has remained at more-or-less the same level for the past 5 months from November 2022 to February 2023. In November 2022 it was 4,8%, 4,6% in December, 4,7% in