November 28, 2022
The Federal Reserve has made the minutes of its early November monetary policy meeting available, adding to the growing body of evidence that the institution is thinking about lowering the rate at which it raises interest rates.
According to the conference minutes, a “large majority” of attendees believed that a slowdown in rate increases would “soon be appropriate.”
According to the minutes, a slower rate hike pace would enable the Fed to more accurately gauge its progress toward its objectives of maximum employment and price stability.
The Fed said, “Among the reasons provided indicating why such an evaluation was necessary were the unclear lags and magnitudes associated with the effects of monetary policy operations on economic activity and inflation.”
A few other participants, however, made the argument that it could be wise to hold off on reducing the rate of rate hikes until the rates were more firmly in restrictive territory and there were more conclusive indications that inflation pressures were dramatically subsiding.
The minutes also stated that participants agreed that additional interest rate increases would be necessary to achieve a policy that is sufficiently restrictive to gradually reduce inflation.
Source: RTT News
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