The recently released minutes of the Federal Open Market Committee (FOMC) meeting held on May 2-3 shed light on a notable divergence of opinions among officials regarding further rate hikes.

During the meeting, the policy rate was raised by 25 basis points, reaching a 16-year high of 5-5.25 percent. However, the minutes revealed a clear split among Fed officials as to whether additional rate hikes were necessary.

The minutes highlighted a prevailing sense of uncertainty among officials regarding the appropriateness of further policy tightening. Some officials expressed the belief that future meetings might require additional policy tightening due to the sluggish progress in reducing inflation to the desired 2 percent mark.

Conversely, several officials noted that if the economy continues to align with its current outlook, further policy tightening may not be necessary following the May meeting.