Committee revealed its May minutes, which showed an uncertain scenario for further tightening. This hints the US central bank is open to holdingMay FOMC’s minutes show uncertainty amongst Fed officials over future hikes
The recently released meeting minutes of the Federal Reserve’s May gathering shed light on the prevailing uncertainty among policymakers. While some officials approved a 25 basis points rate hike, they emphasized that this could potentially be the last one. On the other hand, several policymakers cautioned that flexibility should be maintained in the upcoming meetings.
Officials expressed their belief that if the economy continues to progress “along the lines of their current outlooks,” further tightening of monetary policy may not be necessary beyond the present meeting. The staff of the Federal Reserve presented projections indicating a mild recession towards the end of the year. They highlighted evidence that the cumulative effect of previous tightening measures has started to impact the economy. In particular, concerns were raised by “almost all participants” regarding the risks to economic growth as bank credit conditions tighten.
During the meeting, participants generally agreed that rate cuts were unlikely in the near term. However, they emphasized the need to remain open to the possibility of rate increases if the circumstances warrant it. In this regard, the importance of transparently communicating the Fed’s data-dependent approach to the public was underscored.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FXStreetNews - 🏆 14. / 72 Read more »