Central Banks
Powell Is Blocking Worse Global Inflation, Rwandan Banker Says
- Governor’s comments contrast with criticism by other officials
- Rwanda has raised interest rates by 1.5 percentage points
John Rwangombwa
Photographer: Kimihiro Hoshino/AFP/Getty Images
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The US Federal Reserve’s effort to rein in inflation is needed to stymie price gains from accelerating globally, the governor of the central bank of Rwanda said.
US policy makers raised interest rates by three quarters of a percentage point last week for the third straight time and forecast they would keep hiking in coming months to curb the highest inflation rate in nearly 40 years. Aggressive tightening by the Fed may drag the US economy into recession, weighing on global growth and curbing price increases around the world.