Fed Govt working hard to bring down inflation, exchange rates - Situation Report (2024)

Federal Government’s battle to stem inflation, exchange rate crises is total, Information and National Orientation Minister Mohammed Idris said yesterday.

Idris said the government was deploying the required measures, including devoting various ministries and agencies under its control, to bring down rising inflation and stabilizing the foreign exchange market for the prosperity and comfort of all Nigerians.

The minister, who gave the assurance yesterday in a statement issued in Abuja, also assured that all perpetrators of the resurgent violence and killings in Plateau State would be apprehended and prosecuted, especially as the government is currently facing the issue of security boldly.

Shedding lights on the efforts being made relieve Nigerians of the prevailing challenges, the minister listed a number of programmes and government initiatives, targeted at cushioning the effects of the current realities.

He warned Nigerians to be wary of fifth columnists, who wreak havocs through misinformation and division.

The statement reads: “In the area of security, all threats are being boldly confronted. We are taking the fight to the criminals’ dens, with promising results. Within the last week, several bandits, kidnappers and militants have been neutralized or arrested.

“The resurgent crisis in Plateau State is indeed highly regrettable, and we assure that all perpetrators of violence there, and everywhere else in the country, are being brought to book.

“Justice will be done, and peace will be restored in all affected communities. We salute the gallantry of security and intelligence agencies who are leaving no stone unturned to ensure that we are safe in our homes and on the highways, and that criminals have no breathing space.

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“Regarding the economy, all relevant ministries and agencies of the Federal Government are working in coordinated fashion, to bring down inflation, stabilize foreign exchange rates, and create a truly enabling environment for business and investment. The Nigeria that President Tinubu seeks to build is one where no one is left behind.

“Impactful interventions are being rolled out, including a Students’ Loan Scheme, a Presidential Initiative to deploy lower-cost CNG mass transit buses to provide alternatives to petrol and diesel, and various low-interest loan schemes for businesses.

“The CNG interventions will bring down the cost of transportation by more than 50 percent. We urge Nigerians to take advantage of these opportunities as they emerge, as they have been designed for the benefit of all.”

He also noted that being mindful of its role in achieving the model – Nigeria, the federal government had introduced the Nigerian National Charter, spelling out the contract between Nigerians and the federal government.

The minister said: “Nigeria belongs to all of us, and the work of building the Nigeria of our dreams is one that must be done by everyone, regardless of our religious faith or ethnic group or geopolitical zone.

“It is for this reason that we have produced the Nigerian National Values Charter (NVC), a documentation of the social contract between Government and the citizens, as one of the ways to restore a national sense of hope, trust and solidarity.”

On the fight against corruption, Idris said: “As part of this focus on earning the trust of Nigerians, the fight against corruption will continue, and will intensify. Determined to ensure that there are no sacred cows, and that public funds are applied wholly for the public good, President Bola Ahmed Tinubu is providing the anti-corruption agencies with the support required to fulfill their mandate.

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“We will not succeed at building the Nigeria of our dreams if we insist on focusing only on our challenges and problems, and not the abundant opportunities and positive narratives that we are surrounded by.

“We recognize the fact that the country continues to enjoy genuine enthusiasm for investment from local and foreign investors.”

On other successes, Idris said: “In the opening weeks of 2024, our stock market has already put us on the global map for the impressive returns being delivered. The Indian businesses that pledged $14 billion in new investment in Nigeria on the sidelines of the G20 Summit in India in September 2023 have since started making good on those pledges.”

“Across oil and gas, agriculture, consumer goods, renewable energy, healthcare, ICT and many other fields, we are seeing global and local businesses demonstrating unshakable belief in the limitless possibilities thatNigeriaembodies.”

Fed Govt working hard to bring down inflation, exchange rates - Situation Report (2024)

FAQs

What is the Fed currently doing to curb inflation? ›

What is the current Federal Reserve interest rate? The current federal funds rate — what banks charge each other for short-term loans — is in a range of 5.25% to 5.5%. The Fed has hiked its rate 11 times since March 2022 in its battle to curb inflation.

Can the Fed directly lower the inflation rate? ›

When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down. When inflation is too low, the Federal Reserve typically lowers interest rates to stimulate the economy and move inflation higher. Want to keep reading? Learn the basics of inflation.

Is Michelle Bowman a voting member? ›

As a member of the Board of Governors, Bowman is a permanent voting member of the rate-setting Federal Open Market Committee. Since taking office in late 2018, her public speeches have put her on the more hawkish side of the FOMC, meaning she favors a more aggressive posture toward containing inflation.

What is the Fed rate decision for May 2024? ›

During its May meeting, the Federal Reserve unanimously voted to hold policy rates steady for the sixth consecutive time, leaving the federal funds target rate unchanged at 5.25% to 5.5%.

Who controls inflation in the United States? ›

The Fed is the nation's central bank, and perhaps the most influential financial institution in the world. It is charged with helping the U.S. maintain stable prices (inflation), promote maximum sustainable employment and provide for moderate, long-term interest rates.

Why isn't inflation going down? ›

Demand, which the Fed's rate hikes were supposed to quell, has remained robust, helping drive inflation and signaling that the central bank may not have as much power as it thinks to bring down the pace of price increases.

Who benefits from inflation? ›

Inflation allows borrowers to pay lenders back with money worth less than when it was originally borrowed, which benefits borrowers. When inflation causes higher prices, the demand for credit increases, raising interest rates, which benefits lenders.

Why can't the Fed control inflation? ›

But several other factors that weigh on prices, such as geopolitical conflicts and natural disasters, are outside of the Fed's control. And the Fed can only go so far with interest rate hikes without cooling the economy too much and causing a recession.

Does the president control inflation? ›

A president's actions in office—such as tax cuts, wars, and government aid—can affect prices and the economy overall. The president plays a significant role in deciding how to respond to high inflation or stimulate the economy during a slowdown.

What can the government do to reduce inflation? ›

Monetary policy primarily involves changing interest rates to control inflation. Governments through fiscal policy, however, can assist in fighting inflation. Governments can reduce spending and increase taxes as a way to help reduce inflation.

Is the Fed going to cut rates? ›

The Fed Won't Cut Rates This Year. The Federal Reserve isn't likely to lower interest rates in 2024. Elevated inflation, a resilient economy, and a still-strong, if softening labor market argue against the need for easing monetary policy, especially as these conditions are expected to persist through year end.

What did the Fed say about inflation? ›

The Fed's warier outlook stems from three months of data that pointed to chronic inflation pressures and robust consumer spending. Inflation has cooled from a peak of 7.1%, according to the Fed's preferred measure, to 2.7%, as supply chains have eased and the cost of some goods has actually declined.

Is the Fed doing quantitative tightening? ›

Fed officials have been debating how to wind down the policy. On Wednesday afternoon, the Federal Reserve announced an important change in its strategy for reducing the bonds it holds on its balance sheet—a process known as quantitative tightening. Here's a look at what that means for the markets and investors.

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