announced on Wednesday and cryptocurrency According to the meeting minutes closely followed by the world, FED officials emphasized the need to fight inflation even if it means slowing down the economy, which is already on the verge of a recession, at their meeting in June.
FED Signals Possibly 50 or 75 Base Points Rate Increase at July Meeting
Members said at the July meeting there will likely be another 50 or 75 basis points move.
The following statements were included in the minutes of the FED:
“Amid discussion of potential policy steps at future meetings, members continue to anticipate that continued increases in the target range in the federal interest rate will be appropriate for the Committee to meet its goals.
Specifically, attendees considered that a 50 or 75 basis point increase at the next meeting would probably be appropriate.”
FED members, who increased benchmark interest rates by 75 points at the last meeting, stated that this step is necessary to contain the increase in the cost of living, which has reached its highest level since 1981.
The following statements are included in the document:
“Participants agreed that the economic outlook calls for a restrictive policy stance and considered the possibility that an even more restrictive stance might be appropriate if high inflation pressures persist.”
“Returning Inflation to Two Percent is Critical”
“Participants acknowledged that policy tightening could slow the pace of economic growth for a while, but considered a return to 2 percent of inflation as critical to achieving maximum employment in a sustainable manner,” the meeting brief said.
At the meeting on June 14-15, officials said they needed to make this move to reassure markets and the public that they were serious about fighting inflation.
“Many participants agreed that if the public began to question the Committee’s commitment to adjusting its policy approach as needed, entrenching high inflation was a significant risk facing the Committee,” the minutes said.
At the meeting, Fed officials expressed their optimism about the long-term course of the economy, while cutting their GDP projections from 2.8% in March to 1.7% in 2022 with a sharp decline.
*Not investment advice.