Emphasis on rate hike in Fed minutes

2 mins read
Emphasis on rate hike in Fed minutes

Emphasis on rate hike in Fed minutes

At the December meeting of the US Federal Reserve, most of the participants agreed that the conditions for a rate hike could be met relatively soon if the recent recovery in the labor market continues.

The US Federal Reserve (FED) released the minutes of the December 14-15 FOMC meeting.

Accordingly, in light of the high inflation pressures and the strengthening employment market, the participants decided that it is no longer necessary to continue the increase from the policy support provided by the current rate of net asset purchases.

Read more: Kazakhstan Seeks Russia-Led Bloc’s Help In Dealing With ‘Terrorist Threat’

Policy makers began to discuss at their December meeting how balance sheet policy would play a role in a plan that calls for reduced support for the economy.

Most respondents agreed that the conditions for rate hikes could be met relatively soon if the recent recovery in the labor market continues.

Respondents said it may become necessary to raise federal funds rates sooner or faster than previously anticipated, given the outlook for the economy, the workforce and inflation.

Expectations are mixed for the timing of the first decline in the balance sheet.

It may be appropriate to begin reducing the size of the Fed’s balance sheet relatively soon after rate hikes begin.

Most policy makers decided that the appropriate pace of balance sheet reduction this time would probably be faster than before.

Uncertainty around the outlook is high. Labor market conditions are still far from the Fed’s target.

FİKRİKADİM

The ancient idea tries to provide the most accurate information to its readers in all the content it publishes.

Leave a Reply

Your email address will not be published.

Comment moderation is enabled. Your comment may take some time to appear.