(Finance) – Some Fed members fear that the central bank may raise interest rates more than necessary in an attempt to tame galloping inflation. This is what we read in the minutes of the meeting of 26 and July, when the Fed raised the cost of borrowing 0.75%.
In light of the constantly changing economic environment, several participants believe there is a risk of a squeeze
greater than necessary to restore price stability “, we read in the minutes in which it is observed that a “at some point it will be appropriate to slow down the speed of the increases”.
In assessing the appropriate stance of monetary policy, the Fed “would be ready to adjust the stance of monetary policy should risks arise that could hinder the achievement of the objectives”. It is reiterated that the FOMC is strongly committed to bringing inflation back to its target of 2%.
“The Committee’s assessments will take into account a wide range of information, including public health data, the conditions of the
labor market, pressures and inflation expectations and labor market conditions, inflationary pressures and expectations and financial and international developments “ it is read.
As for Russia’s war against Ukraine “It is causing enormous human and economic hardship. The war and related events are creating further upward pressure on inflation and weighing on global economic activity.”
Meanwhile, Wall Street cuts losses. The Dow Jones lost 0.1%, the S&P 500 0.15% and the Nasdaq 0.5%.