Central Banks

Fed Minutes Show Officials Rally Around Higher-for-Longer Rates

  • Many officials questioned if policy restrictive enough
  • Diversity of views on the balance sheet cap decision
Fed Minutes Show Willingness to Tighten If Needed
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Federal Reserve officials earlier this month coalesced around a desire to hold interest rates higher for longer and “many” questioned whether policy was restrictive enough to bring inflation down to their target.

Minutes from the two-day Federal Open Market Committee gathering ending May 1 showed that, while participants assessed that policy was “well positioned,” various officials mentioned a willingness to tighten policy further if warranted.