• 206
  • 21
  • Favorite

Fed Minutes May Shape Debate Over What Follows June, July Rate Hikes

Reuters2022-05-25

WASHINGTON, May 25 (Reuters) - The Federal Reserve's May 3-4 policy meeting ended with a half-percentage-point rate increase and what Chair Jerome Powell has termed a "broad sense" that similar increases would be approved when policymakers gathered in June and again in July to curb inflation that is far above the U.S. central bank's 2% target.

Minutes of that May session, due to be released at 2 p.m. EDT (1800 GMT) on Wednesday, could start shaping the debate over what happens next.

Officials across the policy spectrum have backed the planned June and July rate hikes, aligning behind Powell's push to make lowering inflation the Fed's top priority.

But beyond that, officials have begun laying out a broad range of positions, from an outright pause in rate increases this fall to calls for an aggressive string of half-percentage-point increases at the September, November and December meetings.

The appetite, or lack of it, for larger incremental rate increases of three-quarters of a percentage point may also be mentioned in the minutes on Wednesday.

Analysts at Citibank said they would be looking "for any discussion of growth versus inflation concerns" as Fed officials try to navigate the economy out of its current inflation dilemma without causing a recession or pushing the unemployment rate substantially higher.

Inflation data has yet to show a convincing turn lower from the levels that have unnerved Fed officials and drawn comparisons with the inflation shocks of the 1970s and early 1980s. The Fed's preferred measure of inflation is running at more than three times the central bank's target.

Some analysts meanwhile have raised their risks of recession, and investors in contracts linked to the federal funds rate have of late pared back their estimates of how high interest rates will rise.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment21

  • TSY123
    ·2022-05-26
    Okay 
    Reply
    Report
  • Sunday128
    ·2022-05-26
    Ok
    Reply
    Report
  • Linnleo
    ·2022-05-26
    Ok
    Reply
    Report
  • PearlynCSY
    ·2022-05-26
    Fed minutes released Wednesday indicated that officials are prepared to move ahead with multiple 50 basis points interest rate increases. In addition, the Federal Open Market Committee said policy may have to move past “neutral” and into “restrictive” territory. The minutes indicate that members are hopeful they can bring down inflation, but also concerned about financial stability risks. Market pricing currently sees the Fed moving to a policy rate around 2.5%-2.75% by the end of the year, which would be consistent with where many central bankers view a neutral rate. Statements in the minutes, though, indicate that the committee is prepared to go beyond there. The minutes mentioned inflation 60 times, with members expressing concern about rising prices.
    Reply
    Report
  • Sunny0809
    ·2022-05-26
    Ok
    Reply
    Report
  • Sunny0809
    ·2022-05-26
    Ok
    Reply
    Report
  • J90
    ·2022-05-26
    Kdkddd
    Reply
    Report
  • J90
    ·2022-05-26
    Nxnnss
    Reply
    Report
  • Xue91
    ·2022-05-26
    Hjss
    Reply
    Report
  • Xue91
    ·2022-05-26
    Hu usd
    Reply
    Report
  • Wtt
    ·2022-05-26
    K
    Reply
    Report
  • xiaobaii
    ·2022-05-26
    like & comment please 
    Reply
    Report
  • andrew123
    ·2022-05-26
    Like 
    Reply
    Report
  • DarkRaven
    ·2022-05-26
    Nice
    Reply
    Report
  • Fiona888
    ·2022-05-26
    Ok
    Reply
    Report
  • shuzyst
    ·2022-05-26
    Ok
    Reply
    Report
  • BlueDragon
    ·2022-05-26
    Nice
    Reply
    Report
  • Noob6
    ·2022-05-26
    ok
    Reply
    Report
  • Alvin1975
    ·2022-05-25
    Up
    Reply
    Report
  • Alvin1975
    ·2022-05-25
    Up
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial