Federal Reserve officials said last month that the pace of future interest rate hikes would depend on incoming data, with some saying inflation should remain at “sufficiently restrained levels” depending on the minutes “for some time.” July 26 and 27 sessions.
Session participants said inflation may take longer than expected to dissipate and that a central bank-orchestrated slowdown in aggregate demand “will play an important role in easing inflationary pressures,” according to the report’s minutes, which were released Wednesday.
The minutes did not indicate a clear bias among Fed officials for a smaller half-percentage-point rate hike or a third consecutive 75-basis-point hike at the next Fed meeting. 20 and 21 September, but a reaffirmation that the behavior of inflation and the economy in general will drive the decision.
The Fed raised overnight interest rates by 225 basis points this year to a target range of 2.25% to 2.50% as part of efforts to control inflation, the highest level in four decades and hovering around the Fed’s preferred measure. , more than three times the 2% target.
The central bank is expected to raise rates by 50 or 75 basis points next month.
For the Fed to scale back its rate hikes, inflation reports before the next meeting can be expected to confirm that price increases are slowing.
