Majority Of Fed Policy Makers Think Time To Slow Interest Rate Hikes: Meeting Minutes

WASHINGTON (UrduPoint News / Sputnik - 24th November, 2022) A majority of Federal Reserve officials behind this month's US interest rate hikes thought it was time to slow down the pace of monetary tightening, according to the minutes of their meeting held at the beginning of the month and released on Wednesday.

"The minutes of the November 1-2 Fed policy meeting show that a substantial majority of participants thought a slowing in the pace of interest rate hikes would be appropriate soon," the Fed's policy-making Federal Open Market Committee (FOMC) said.

The minutes were the clearest sign yet that the Fed was ready to slow the interest rate hikes after carrying an intensive acceleration over the past seven months to cool inflation.

Inflation, as measured by the Consumer price Index, expanded by 7.7% during the year to October, growing at its slowest pace of in nine months after peaking with a 9.1% increase during the 12 months to June.

The drop came after relentless interest rate hikes by the Fed, which has added 375 basis points to the rates since March from a starting point of 25. Nevertheless, inflation remains more than three times higher than levels preferred by the Fed, which has vowed to get to its 2% target.

After the four straight interest rate hikes of 75 basis points between June and November, markets have signaled they expect the Fed to impose a smaller increase of 50 basis points at its upcoming rate decision on December 14.