Showing determination: Fed Minutes: US currency holders indicate further significant interest rate hikes

They support the intention to raise interest rates by 0.50 or 0.75 percentage points at the next meeting in late July, according to the minutes of the June 14-15 meeting of the FOMC Monetary Policy Committee released on Wednesday. According to many participants, there is a significant risk that inflation When the public questions the Fed’s determination to adjust its monetary policy stance.

It was recognized that economic growth could slow down for some time as a result of higher interest rates. But only returning to the 2% inflation target can achieve full employment on a sustainable basis, say the minutes. It will be “even more restrictive” in the future Monetary policyPossible. The fear of recession on the financial markets has increased recently Return That’s why the bond markets have fallen recently.

financial markets Hardly reacted to the publication. After all, Fed Chairman Jerome Powell’s recent meeting was followed by another big meeting. rate increase 0.75 percent cannot be ruled out. However, such increases will not be normal.

At its most recent meeting, the US Federal Reserve raised interest rates by 0.75 percentage points to between 1.50 and 1.75 percent. It was the third increase in the prime interest rate since the start of the coronavirus pandemic – and the first increase of 0.75 percent since 1994. The reason for decisive action is too high inflation. The annual rate in May was 8.6 percent. The Fed is targeting a rate of 2 percent.

/jsl/stw

Washington (DPA-AFX)

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