At the Federal Open Market Committee (FOMC) meeting on September 20-21, officials said they would raise interest rates to binding levels in the near future and push inflation to target levels, indicating a policy to be maintained at that level. . This was revealed by the minutes of the meeting published on 12.
However, the minutes note that “particularly in the current highly uncertain global economic and financial environment, it may be important to moderate the pace of further tightening in order to mitigate the risk of a significant negative impact on the economic outlook. It was emphasized by one. of the participants “.
At its last regular meeting in September, the FOMC raised the Federal Funds (FF) interest rate target by 0.75 percentage points to 3-3.25%. The 0.75 percentage point rate hike was the third consecutive fight.
President Powell urges to prepare for further “pain” – to continue aggressive interest rate rises
“Many participants pointed out that the cost of doing too little to contain inflation is likely greater than the cost of doing too much,” the minutes said.
The FOMC agreed to bring inflation back to the central bank’s 2% target, but some participants warned that the official rate had reached depressive territory, people said.
Original title:Fed officials commit to tight rates but calibration is needed(extract)
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