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04/07/24
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Minutes Show Many Fed Officials Want More Rate Hikes
The Fed’s FOMC has released the minutes from its previous meeting, which underlined that most participants felt that economic growth in the U.S. was cooling gradually.
The meeting minutes said most participants determined that economic activity growth seemed to be cooling gradually and saw the current policy as restrictive.
Despite this easing, the Fed is waiting for further information before reducing interest rates.
The FOMC noted that it wouldn’t consider cutting the federal funds rate target until more data was available to give greater assurance that inflation was on a sustainable path down.
The FOMC members didn’t believe it should reduce the target range for the federal funds rate until more information had become available to provide them with more confidence that inflation was dropping sustainably toward the target of 2%.
Most participants felt that the current policy stance was restrictive, and they expected it would temper both inflation and economic activity further.
The policymakers agreed to keep the policy rate at between 5.25% and 5.50% range, as it has been for a year.
The minutes also showed some FOMC members favored a cautious approach and emphasized the need for patience before cutting rates.
Several members however pointed out the possible requirement to hike rates again if inflation showed signs of resurging.
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