U.S. Fed minutes dhow officials rally around higher-for-longer rates
BNN Bloomberg
Federal Reserve officials earlier this month coalesced around a desire to hold interest rates higher for longer and “many” questioned whether policy was restrictive enough to bring inflation down to their target.
Minutes from the two-day Federal Open Market Committee gathering ending May 1 showed that, while participants assessed that policy was “well positioned,” various officials mentioned a willingness to tighten policy further if warranted.
“Participants noted disappointing readings on inflation over the first quarter,” according to the minutes released Wednesday in Washington. The minutes showed “that it would take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2 per cent.”
Officials also discussed holding rates steady for longer “should inflation not show signs of moving sustainably toward 2 per cent or reducing policy restraint in the event of an unexpected weakening in labor market conditions,” the minutes said.
