Federal Reserve is preparing for additional significant rate increases | Lotal Ghana

 Amid concerns that high inflation may "get entrenched," the Federal Reserve is preparing for additional significant rate increases

Federal Reserve is preparing for additional significant rate increases

According to the minutes from the Federal Reserve's June meeting, the organization reaffirmed its commitment to reducing inflation, even if it necessitates adopting a "more restrictive [policy] posture."

 

At the forthcoming meeting in July, the Fed's members intend to increase interest rates by either 50 or 75 basis points as the surge in inflation shows no signs of slowing.

 

Central bank officials agreed that tighter monetary policy is "essential" to reaching long-term inflation goals and pledged to take more aggressive action even if it hurts economic growth, despite the fact that it "may reduce the pace of economic expansion for a while."

 

Although they are still upbeat about the long-term prospects for the US economy, Fed members have reduced their full-year GDP predictions from a previous estimate of 2.8 percent in March to 1.7 percent.

Source: Forbes