At a meeting held by the Federal Open Market Committee (FOMC) on June 14-15, policy rates will continue to rise for a longer period of time, albeit with a slowdown in economic growth, to prevent high inflation from taking root. They agreed that there might be a need.
Officials also supported raising the policy rate by 50 to 75 basis points (bp, 1bp = 0.01%) at the July meeting. It was revealed in the agenda released on the 6th that maintaining confidence in the financial authorities over controlling inflation is extremely important.
“The significant risk facing the FOMC today is that high inflation can take hold if the public begins to question the FOMC’s determination to adjust its policy stance as needed.” , Many participants decided. “
“While policy tightening can temporarily slow the pace of economic growth, a return to 2% inflation is crucial to achieving maximum employment on a sustainable basis,” officials said. He gave his view.
He added, “We acknowledged that a more restraining stance might be appropriate if high inflationary pressures continue.” “If inflation expectations are no longer fixed, more will be needed to bring inflation back to the FOMC’s target,” he said.
Original title:Fed Saw ‘More Restrictive’ Rates Possible If Inflation Persists(excerpt)
(The content of the agenda will be added and updated following the third paragraph.)
