The Latest Fed Minutes

This afternoon, the Federal Reserve released the minutes from its meeting held earlier this month. The minutes showed that the Fed is looking at making three more rate hikes over the next few months. Some Fed members said they think inflation may be cooling off, but it’s too early to say that inflation has peaked.

From the minutes:

In their consideration of the appropriate stance of monetary policy, all participants concurred that the U.S. economy was very strong, the labor market was extremely tight, and inflation was very high and well above the Committee’s 2 percent inflation objective. Against this backdrop, all participants agreed that it was appropriate to raise the target range for the federal funds rate 50 basis points at this meeting. They further anticipated that ongoing increases in the target range for the federal funds rate would be warranted to achieve the Committee’s objectives.

I’ve been critical of the Fed because I believe it was slow to react to inflation, even as the evidence became clear. These minutes tell me that the Fed is starting to realize that inflation is a problem. Still, I want to see more action rather than rhetoric.

Posted by on May 25th, 2022 at 3:18 pm


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