This Federal Reserve Bank of the United States (Fed) has predicted further rate hikes if necessary to steer the market. Inflation hits 2 percent targetyes ok there was no unanimity As can be seen from the minutes of the last monetary policy meetings held on January 31 and February 1, these increases are in the rhythm.
The Committee confirms that “almost all” of its members agree that this would be appropriate. increase the price of money by 25 basis points, “a few” were in favor of a 50-point increase realizing that a monetary policy that is “not sufficiently restrictive” could derail efforts to contain inflation so far.
restrictive policy
“Members believe it will be necessary maintaining a restrictive policy It will probably take some time until the data received clearly confirms that inflation is on the way down to 2 percent,” the document said.
The Fed believes economic growth in 2022 is below the long-term average and thinks it will “slow further in 2023”. In addition, the committee shares its appreciation. labor market remains ‘too tight’ Due to the delay between demand for labor that exceeds what is available and pushing up the wage bill.
On the other hand, the Central Bank continues its assessments. recession As a “reasonable” scenario in the country at some point in the year, after weak growth in private domestic spending and expected “tight” fiscal conditions.
On February 1, the Fed decided to unanimously approve a 25 basis point rate hike until it places the rate within a target range of 4.50% to 4.75%. The agency had already estimated that further increases would be needed throughout the year to counter inflationary pressures.