Fed officials back higher-for-longer rates
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.
New York: officials earlier this month coalesced around a desire to hold higher for longer and "many" questioned whether was restrictive enough to bring to their .Minutes from the two-day gathering ending May 1 showed that, while participants assessed that policy was "well positioned," various mentioned a willingness to tighten policy further if warranted.
"Participants noted disappointing readings on over the first quarter," according to the minutes released Wednesday in . The minutes showed "that it would take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2%."
Officials also discussed holding rates steady for longer "should inflation not show signs of moving sustainably toward 2% or reducing policy restraint in the event of an unexpected weakening in labor market conditions," the minutes said.
Following a first-quarter pickup in inflation, Fed officials have said they will hold interest rates at a 23-year high for longer than initially anticipated.
Chair Jerome Powell said at his May 1 press conference that it wouldn't be appropriate to lower borrowing costs until the central bank has greater confidence that inflation is on a sustainable path to its 2% target.
Source: Stocks-Markets-Economic Times
