Reported 6 months ago
Federal Reserve officials at their recent policy meeting expressed continued faith in the easing of price pressures in the coming months, although doubts arose regarding the adequacy of current interest rates to ensure this outcome. The meeting revealed discussions about the possibility of raising borrowing costs further if inflation surged. While Fed Chair Jerome Powell and other policymakers have indicated that further rate hikes are unlikely, the minutes showed a debate on the tightness of monetary policy, impacting the return of inflation to the 2% target. The minutes indicated potential uncertainty among officials about the effectiveness of high interest rates on consumer and business spending, leading to questions about inflation levels. The release of the minutes caused U.S. Treasury yields to rise, and traders adjusted expectations for Fed rate cuts. While investors previously anticipated rate cuts starting in September, recent signs of easing inflation suggest policymakers may wait longer before making any adjustments.
Source: YAHOO