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Tags: federal open market committee | federal reserve | inflation | interest rate hikes

Fed: Sharply Higher Rates May be Needed to Quell Inflation

Fed: Sharply Higher Rates May be Needed to Quell Inflation
Federal Reserve Chairman Jerome Powell (Getty Images)

Wednesday, 06 July 2022 02:14 PM EDT

Federal Reserve officials were increasingly concerned at their meeting last month that consumers were starting to anticipate higher inflation, and they signaled that much higher interest rates could be needed to restrain it.

The policymakers also acknowledged, in minutes from their June 14-15 meeting released Wednesday, that their rate hikes could weaken the economy. But they suggested that such steps were necessary to slow price increases back to the Fed's 2% annual target.

The officials agreed that the central bank needed to raise its benchmark interest rate to “restrictive” levels that would slow the economy’s growth and “recognized that an even more restrictive stance could be appropriate” if inflation persisted.

After last month's meeting, the Fed raised its rate by three-quarters of a point to a range of 1.5% to 1.75% — the biggest single increase in nearly three decades — and signaled that further large hikes would likely be needed.

© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


StreetTalk
Federal Reserve officials were increasingly concerned at their meeting last month that consumers were starting to anticipate higher inflation, and they signaled that much higher interest rates could be needed to restrain it.The policymakers also acknowledged, in minutes...
federal open market committee, federal reserve, inflation, interest rate hikes
149
2022-14-06
Wednesday, 06 July 2022 02:14 PM
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