(Finance) – A timely increase in the debt ceiling is essential. The Federal Reserve says so minutes of the meeting of 2 and 3 May in which the central bank reveals divided on the next monetary policy moves.
Many officials within the institution led by Jerome Powell – says the Fed in the minute – they are pressing for a break, while others ask to go ahead with the increases to try to stop the high inflation.
The Fed staff – we read – maintain the prediction of a “mild” recession this year.
On US inflation, there are both upside and downside risks – according to board members – while “generally they expressed uncertainty about how much monetary tightening might be appropriate.”
Some governors – the minutes continue – argued that according to their expectations, progress on the return of inflation to 2% could be “unacceptably slow” and that an “additional tightening” could be justified at the next meetings. However other officials noted that if the economy evolves based on current prospects further experiments after this meeting may “not be necessary”.