In the minutes of the Fed’s last meeting, it was stated that interest rate hikes would continue until inflation “significantly” dropped.

The Fed released the minutes of the last meeting of the Federal Open Market Committee (FOMC), held on July 26-27, 2022.

Fed officials stated in the minutes that there is no evidence that inflation is falling and that the rate of future rate hikes depends on the data. On the other hand, it was emphasized that interest rate hikes would continue until inflation drops significantly.

On the other hand, officials agreed last month on the need to slow the pace of rate hikes eventually. “As the monetary policy stance tightens further, it may be appropriate at some point to slow the pace of policy rate hikes while assessing the effects of cumulative policy adjustments on economic activity and inflation,” the minutes said. Statements were included.

Many officials also noted that the committee risks tightening its policy stance, given the ever-changing nature of the economic environment and the existence of long and variable lags in the impact of monetary policy on the economy.

At its last meeting on July 26-27, 2022, the Fed decided to increase the policy rate by 75 basis points to 2.25-2.50 percent.

The resolution text repeated the message that the Fed is highly attentive to inflation risks, emphasizing that expenditures and production softened despite wage increases.

Emphasizing that continued interest rate hikes within the target range would be appropriate in the decision, the Fed stated that the policy could be reviewed when the risks to implementing the targets were concerned.