The members of the Federal Open Market Committee of the United States Federal Reserve (Fed) forecast At their last meeting, new interest rate hikes were raised and they warned of a possible rise in inflation in the coming months.
“LMost participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy”, state the minutes of the last meeting held in July and published this Wednesday.
In fact, the Fed’s fears were confirmed on August 10 when, after 12 consecutive months of falls, the inflation rate in the United States rose two tenths in July and stood at 3.2%.
After a break in June, On July 26, the Fed decided to resume raising interest rates and raised rates by 0.25 percentage points.. Rates moved to a range between 5.25% and 5.5%, their highest level since 2001.
It was the 11th rate hike since March 2022. Fed Chairman Jerome Powellaffirmed after knowing the data that inflation continues “well above” the long-term target of 2% and that it will still “take time” to get there.
At the meeting, the Fed minutes note, participants discussed “various risk management considerations that could influence future policy decisions,” with inflation at the center.
In determining the degree of additional policy tightening that may be appropriate to bring inflation back to 2%, members agreed that they will take into account how long it takes for rate hikes to take effect and economic and financial developments.
The next meeting of the Federal Open Market Committee will be held on September 19 and 20.
Source: Larepublica
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