© Reuters
Investing.com – The US Federal Reserve released the minutes of its last meeting in June, and here are the 10 most important things they said:
1. Members continue to fear inflationMembers at the last meeting of the Central Bank expressed their concern about the pace of inflation and the possibility of an inflationary recovery once again.
2. The banking system is strong and resilientThe US banking system is strong and resilient, and credit constraints are expected to affect the economy.
3. The effects of raising interest rates are good: Federal Reserve members see the effects of rate hikes moving in line with expectations.
4. Expectations of a downturn in the labor market: Fed members expect a decline in the combined domestic product and an increase in the unemployment rate as part of the rebalancing of the economy.
5. economic slowdownMembers see that the US economy is already slowing down and expect softer GDP data.
6. Confirm that inflation has reached high levelsMembers are sure that inflation rates have reached very high levels, and the belief that it will return to low levels requires more evidence.
7. The majority supports raising rates againThe majority of members believe that the inflation situation calls for a new hike in interest rates.
8. Minority concern about extreme monetary tighteningSome members expressed concern about the repercussions of too much monetary tightening.
9. ASplit among members in julyTwo members of the Federal Reserve refused to raise interest rates in July and supported fixing them at 5.25%.
10. Interest rate expectations changeInterest rate hike expectations rose slightly after the release of the minutes from the last Fed meeting in July. Interest expectations by futures contract in November rose from 5.425% to 5.435%. This means that the market expects a slight hike in interest rates, estimated at 10 basis points instead of 25 basis points, as the Fed used to raise recently.
2023-08-16 19:07:00
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