2023-08-17 11:16:51
Minutes from the US Federal Reserve’s monetary policy meeting show that monetary authorities remain concerned that inflation will not ease and that further increases in interest rates will be necessary. Some dissenting voices were also heard. Announced the agency Bloomberg.
Most participants continued to see significant upside risks to inflation, which may require further tightening of monetary policy,” according to minutes of the US central bank’s July policy meeting published yesterday in Washington.
Although inflation is decreasing, economic activity is still quite strong, which could reignite inflationary tensions.
“We intend, again, to maintain tight policy until we are confident that inflation is sustainably falling to our 2% target, and we are prepared to tighten further if that is appropriate,” said Powell, the Fed chairman.
Treasury yields rose after the release of the minutes on Wednesday, while the S&P 500 index extended its losses and the dollar rose.
The record of the July meeting also added further detail to public comments by Federal Open Market Committee officials in recent weeks, who suggested that the strong degree of consensus underpinning the aggressive tightening campaign of the last year and a half may be starting to break down. wear.
Investors currently don’t expect another rate hike this year, according to futures contracts. They continue to see the Fed start with rate cuts in 2024, with the benchmark falling to around 5.5% to 4.25% by the end of next year.
Analysts are looking forward to the annual Jackson Hole conference of central banks next week to better understand the Fed’s intentions on whether or not further monetary tightening is needed.
#Minutes #Fed #meeting #show #policymakers #ruling #rate #hikes