What did the members of the Federal Reserve agree to reduce inflation in the US?

Most of the Federal Reserve Board agreed at its last monetary policy meeting that it would slow the rate of growth interest rate of 25 basis points, but they agreed that the risk of high inflation was still a “key factor” justifying further interest rate hikes.

According to the minutes of the Jan. 31-Feb. 1 meeting, released this afternoon, “almost all participants agreed that it was appropriate to raise the target range for the federal funds rate.” 25 basis points” and they argued that it would allow the Fed to “better determine the scope” of future hikes.

However, “participants generally noted that upside risks to the inflation outlook remain a key factor determining the outlook” and that interest rates would have to rise and remain high “until inflation is clearly on track for 2 percent.”

Meanwhile, several participants in the meetings openly advocated for larger increases in interest rates, an order of magnitude half a percentage point, or said they “could support it”.

The record thus showed the Federal Reserve moving toward a possible end point of its current interest rate hikes, slowing the pace to move more cautiously toward a possible stop, but also leaving open the possibility of further tightening if inflation does not subside.

During a year in which the Federal Reserve has caught up with inflation that has jumped to a 40-year high, the bank has raised interest rates at eight meetings, from a starting point near zero last March to a current range of between 4.59 and 4.75 percent. .

NEWS IN DEVELOPMENT.