WASHINGTON: US Federal Reserve (Fed) officials agreed last month they should hold interest rates high “for some time” in their ongoing fight against i...
Members of the Fed’s rate-setting committee have remained united on interest rate decisions since the start of an aggressive campaign of monetary tightening back in March 2022. – AFPpic)US Federal Reserve officials agreed last month they should hold interest rates high “for some time” in their ongoing fight against inflation, according to minutes of the meeting published on Wednesday .
But while the rate of price increases has slowed markedly since last summer, it remains stuck above the Fed'’s long-term target of 2%. “The minutes are consistent with the hawkish immediate post-meeting communications from chair Powell and others,” Pantheon Macroeconomics chief economist Ian Shepherdson wrote in a note to clients.
With the bulk of the interest rate increases now done, policymakers have been arguing for different approaches in between meetings, with some still pushing for more rate hikes, and others calling for a prolonged pause.