At its meetings held on July 26-27, the Federal Open Market Committee (FOMC) agreed on the need to eventually slow down the pace of interest rate hikes. was also shown.
In the minutes of the FOMC meeting released on the 17th, “As the monetary policy stance tightened further, the pace of policy rate hikes slowed, and at the same time, policy adjustments that had been made had an impact on economic activity and inflation. Scrutinizing the effects is likely to be appropriate at some point.”
The minutes also stated that “Given the ever-changing nature of the economic environment and the fact that monetary policy has long and irregular time lags in having an Many participants noted that there was also the risk of tightening policy stances more than necessary in order to do so.”
The FOMC decided to raise interest rates by 0.75 points for the second consecutive meeting in July. The Fed tightened at the fastest pace since the early 1980s to combat high inflation.
FOMC raises interest rates by 75bp for second consecutive meeting-Powell denies recession (4)
At the July meeting, participants also said that “a salient risk facing the Commission is that high inflation could take hold if the public begins to question the Commission’s determination to adequately coordinate policy.” decided,” the minutes read.
Original title:Fed Saw Smaller Hikes Ahead to Assess Prior Moves, Minutes Show(excerpt)
(Add and update the content of the minutes)