FOMC minutes: Fed members split in support of further interest rate hikes

• The Federal Reserve publishes the minutes of its meeting on May 2 and 3, in which it raised rates 25 basis points.
• The Minutes showed a split in support for further rate hikes.
• The US dollar maintains daily gains after the publication of the Minutes.

The Federal Open Market Committee (FOMC) published the Minutes of the meeting on May 2 and 3, causing a limited reaction in the financial markets. According to the document, officials were divided on support for further interest rate hikes. They agreed that inflation was still “unacceptably high” and that they were still seeing a “mild recession” later this year.

In May, the Federal Reserve (Fed) raised policy interest rates by 25 basis points, to 5.00% – 5.25%, as expected. The central bank hinted at a possible pause at the June 13-14 meeting. Since the May meeting, US economic data has been mixed, but far from indicating a recession. The consumer price index (CPI) slowed to 4.9% in April; however, the core CPI rose to 5.5% over the prior year. The Core Personal Consumption Price Index for April, the Fed’s preferred inflation gauge, will be released in the US on Friday.