According to the minutes, inflation remained significantly above the 2% target set by the Fed.
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According to the minutes of Wednesday’s meeting, the members of the Federal Reserve reported that, although there are signs of a decline in inflation, this is not significant enough to prevent the need to further increase interest rates.
The officials highlighted their great concern about inflation, after this first meeting decided on a lower rate increase than most of those applied since the beginning of 2022.
According to the minutes, inflation remained significantly above the 2% target set by the Fed. This happened because there were very few people looking for work and that kept wages and the prices of things going up.
The Fed decided to increase the rate by 0.25 percentage pointswhich was the lowest increase since the first increase in March 2022.
After the decision, the interest rate used by the Fed will be between 4.5% and 4.75%. Based on what was written in the minutes, the Fed is very concerned that inflation will continue to be a problem.
“Participants noted that inflation data received over the past three months showed a welcome reduction in the monthly pace of price increases, but emphasized that much more evidence of progress would be needed over a broader range of prices to be sure that inflation was on a sustained downward trajectory,” the minutes said.
The summary, the minutes said members believe continued rate increases will be necessaryas reported on CNBC.
The shares in the Stock Market fell after the publication of the minutes.
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