The Fed raised interest rates by another 0.25 percentage points in July, to a range of 5.25-5.50 percent. This is the highest interest rate level in 22 years. The increase was the eleventh since March last year.
The purpose of the increases is to push inflation down to 2 percent.
According to the July minutes, the bank’s members see a series of “cautious signs that inflationary pressure is about to subside”, writes AP.
At the same time, the members note that the current inflation – at 3.2 percent – is still well above the target and that more economic data is needed to “be able to say with certainty that inflationary pressure is easing”.
The next meeting of the Fed’s executive board is in September.