The price of the dollar in Colombia registered a stable day this Wednesday, October 9, in which it had no variations with respect to the Representative Market Rate, which was $4,233.
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Its average price closed the same as it began, in the middle of a day of expectation for the presentation of the minutes of the US Federal Reserve.
At the close of the session, it was learned that the Fed still has doubts that inflation is fully containeddespite the fact that on September 18 they opted for the first drop in interest rates in more than four years, with a reduction of 50 basis points.
This was stated by the members of the Federal Open Market Committee (FOMC) of the central bank during the meeting held on September 17 and 18, whose minutes were made public this Wednesday: “They agreed that more progress had been made toward the 2% inflation target, but that inflation was still somewhat high,” the minutes indicate.
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In fact, for the first time since 2005, one of the twelve FOMC members dissented from the rest. This is Michelle Bowman, who only wanted them to be lowered by 25 basis points instead of the 50 finally announced.
The drop was the first drop in four and a half years and with it the reference rate of interest rates is in a range of 4.75% to 5%.
According to the minutes, Bowman wanted to lower them by only a quarter of a point “with core inflation remaining well above the Committee’s target, a labor market that is close to full employment and solid underlying growth”.
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“He also expressed concern that the Committee’s broader policy move could be seen as a premature declaration of victory on the price stability portion of the dual mandate.”the minutes indicate. As reported in September in the Fed’s statement and in the subsequent press conference of its president, Jerome Powell, the members of the FOMC, the body that decides on interest rates, agreed that additional adjustments will be made based on “the (economic) data received, the evolution of the outlook and the balance of risks”.
The assessments will take into account a wide range of information, including readings on labor market conditions, inflationary pressures, and financial and international developments.
Regarding the current state of the economy, committee members agreed that economic activity had continued to expand “at a solid pace,” that employment “had slowed and the unemployment rate had increased, but remained low.”
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This Thursday, inflation data will be released for the month of September, a few days after it was announced that the net creation of new jobs rose that month to 254,000, about 95,000 more than those generated in August.and a figure much higher than expected by economists.
The Fed’s next interest rate meeting will take place on Wednesday and Thursday, November 6 and 7, one day after the US presidential election on November 5.
PORTFOLIO
With information from EFE
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