A “substantial majority” of policymakers at the Federal Reserve meeting earlier this month agreed that “it would probably be appropriate shortly” to slow the pace of interest rate hikes as debate rages over the implications of the strong monetary tightening by the US central bank, the minutes of the session showed.
The document from the November 1st-2nd meeting, in which the Fed raised its benchmark interest rate by 0.75 percentage points for the fourth consecutive time, showed that the authorities were largely satisfied with the idea of being able to adopt smaller steps and more deliberate interest rates as the economy adjusts to more expensive credit.
“A slower pace… would better allow the (Open Market) Committee to assess progress towards its goals of maximum employment and price stability,” said the minutes, released on Wednesday (23).
“The lags and uncertain magnitudes associated with the effects of monetary policy actions on economic activity and inflation are among the reasons cited.”
Source: CNN Brasil
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