Consumer inflation in the US moderated to 6.4 per cent in January from 6.5 per cent in December, and 7.1 per cent the previous month but still is way above the 2 per cent target.
Minutes of the latest monetary policy meeting of the US Federal Reserve showed some of the participants noted that the probability of the economy entering a recession in 2023 remained elevated.
In recent months, it said they have seen downside surprises in the inflation data, and headline inflation has already peaked in nine out of 12 economies in the region.
The US central bank said 23 banks will be tested this year against a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets.
The US central bank's policy rate is now in a target range of 4.25-4.50 per cent, the highest level in 15 years, and notably, it was near zero in the early part of 2022.
In December, consumer inflation in the US moderated to 6.5 per cent from 7.1 per cent the previous month but still is way above the 2 per cent target. In October, it was reportedly 7.7 per cent.
Indian stock indices have extended losses for the second straight session, largely due to continued selling by foreign investors on concerns over higher stock valuations.
The US central bank's policy rate is now in a target of 4.25-4.50 per cent, the highest level in 15 years, and notably, it was near zero in the early part of 2022.
US Federal Reserve Governor Lisa D. Cook has said inflation in the US remains "far too high" despite some encouraging signs lately, and the top central bank official termed it as a concern.