2023-05-24 21:00:50
Washington US monetary authorities are eyeing a pause after a series of rate hikes. That comes from the minutes of the latest monetary policy meeting from early May, released on Wednesday.
According to this, the senior members of the central bank were generally agreed that after the series of interest rate hikes, further steps upwards were no longer so necessary. Some participants even stated that they believe the hike agreed at the meeting could be the last.
Others countered that the central bank must keep its options open in the face of persistent inflation. Almost all participants in the session also saw upside risks to inflation. Some said further rate hikes were “probably” necessary.
Meanwhile, Fed Board member Christopher Waller made it clear in a speech that even if interest rates were to be paused in June, the phase of increases would not have to end. An increase in July remains an option: there will be more clarity about credit conditions by July. If bank conditions haven’t become excessively tight by then, a rate hike in July “could be the right monetary policy,” Waller said.
The Federal Reserve has kicked rates up from near zero to a range of 5.00 to 5.25 percent since early 2022 to counter inflationary pressures. At 4.9 percent, inflation is still well above the Fed’s target of 2.0 percent.
More: US inflation rate falls slightly to 4.9 percent – speculation about the further course of the Fed
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