New York, Wednesday, 6 July 2022
According to the FOMC minutes from the June meeting, Fed officials supported an increase of 50 or 75 basis points in July and expressed their continued belief that the fed funds rate should continue to rise.
The US economic forecast called for a shift to a tighter posture of policy, and officials acknowledged that if strong inflation pressures persisted, a more stringent attitude may be necessary.
Despite the fact that they acknowledged that policy tightening may temporarily impair economic growth, they nevertheless believed that returning to a 2 percent inflation rate was necessary to achieve maximum employment over the long term.
Instead of the anticipated 50bps hike, the Federal Reserve raised the funds rate by 75 basis points to 1.5 percent to 1.75 percent during its meeting in June 2022.
(Source: Federal Reserve // Edited by: The Decision Maker - Finance editors)