Economics
Fed Saw Aggressive Hikes Providing Flexibility Later This Year
- Minutes show support for half-point hikes in June, July
- Restrictive interest rates ‘may well become appropriate’
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Federal Reserve officials agreed at their gathering this month that they need to raise interest rates in half-point steps at their next two meetings, continuing an aggressive set of moves that would leave them with flexibility to shift gears later if needed.
While highlighting the “strong commitment and determination” of all policy makers to restore price stability, the minutes of the May 3-4 meeting, released Wednesday, showed officials attentive to financial conditions as they prepare to raise rates further.