“We are seeing inflationary pressures building up around the world,” stressed. “We think of a situation that could make this pandemic last longer, there are longer supply disruptions that are putting inflationary pressures, and then we run the real risk of something that we have avoided so far, which is concerns about stagflation.” Gopinath added.
In a context where inflation In the world is accelerating, in which the pandemic continues to give various news and amid the default of international bonds by the Chinese real estate company Evergrande, the financial markets start the penultimate session with caution.
Given this, the peso depreciates this morning, along with most emerging currencies, to operate at 20.9885 units per dollar, after closing at 20.9652 on Wednesday. While waiting for the inflation data in the United States tomorrow, in Mexico inflation increased 1.14 percent in November, which implied the largest increase for that month in 21 years. With this, annual inflation stood at 7.37 percent, a level not seen since January 2001. While in China inflation rose to its highest since August 2020.
In the same vein as Gopinath, Jerome Powell, the chairman of the United States Federal Reserve, said last tuesday that the central bank would likely discuss accelerating its reduction of large-scale bond purchases at its next monetary policy meeting, amid a strong economy and expectations that an increase in inflation will persist into the middle of next year, that is, “already it is not a transitory phenomenon. “
“At this point, the economy is very strong and inflationary pressures are high, and therefore in my opinion it is appropriate to consider ending the reduction in our asset purchases, which we actually announced at the November meeting, perhaps a few months. before, and I hope we will discuss it at our next meeting in a couple of weeks, “Powell said in testimony before the Senate Banking Committee.
The Fed began reducing its support for the economy this month, and is currently on track to fully complete its $ 120 billion in monthly purchases of Treasuries and mortgage-backed securities by next June. The program was introduced in early 2020 to help prop up the economy during the COVID-19 pandemic.