Fed will keep raising rates until inflation cools down, meeting minutes show
The minutes indicate the Fed's resolve to raise interest rates to a level that sufficiently slows the economy — and, officials said, keep it at that level until it's clear inflation is slowing down.The minutes are from the Fed's July 26-27 meeting, where officials agreed to raise interest rates by three-quarters of a percentage point after an identical move in June. These were the steepest rate increases since 1994.
According to the minutes, officials agreed it would "likely become appropriate" to eventually dial back the pace of interest rate hikes as the central bank assesses the effects its policy is having on the economy and inflation. Speaking at the press conference, Powell left the door open to another "unusually large" interest rate increase at its upcoming meeting, though he said the decision will depend on incoming economic data.the Fed to raise interest rates by a half-percentage point — a bet that firmed up after the release of the minutes.The minutes show Fed officials' commitment to bring inflation down and point out the downside of wavering on this stance.
But, notably, many officials also pointed out the risk of overdoing interest rate hikes and crimp the economy more than necessary to bring inflation down.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Sees Interest Rate Hikes Continuing Until Inflation Eases Substantially, Minutes ShowThe FOMC on Wednesday released minutes from its July 26-27 meeting, when it raised interest rates by 0.75 percentage point.
Read more »
Fed officials anticipate 'significant' interest rate hikes until inflation eases, minutes showFederal Reserve officials expressed resolve to bringing inflation closer to their 2% target at the July meeting, with policymakers forecasting more 'significant' rate hikes.
Read more »
Fed Officials Pledge More Big Rate Hikes Until There Is A ‘Meaningful’ Decline In InflationThe Federal Reserve reaffirmed that it is unlikely to take its foot off the pedal as it continues to raise interest rates until inflation eases in a meaningful way.
Read more »
Fed Officials Pledge More Big Rate Hikes Until There Is A ‘Meaningful’ Decline In InflationDespite consumer prices cooling last month, Fed officials are unlikely to reverse the course of monetary policy tightening anytime soon.
Read more »
Federal Reserve officials back moving interest rates higher in order to slow the economy, minutes showFederal Reserve officials in July saw the need to raise interest rates by enough to slow the economy, minutes of the July meeting showed.
Read more »