The minutes of the FED's meeting held on 25-26 July were announced. Here are all the details.
- Respondents said inflation was 'unacceptably high', noting that more evidence is needed to be sure price pressures are easing.
- Inflation risks may require further tightening.
- Most Fed officials saw 'significant' upside risks to inflation.
- While experts do not see a recession in 2023, they think economic growth will slow in 2024-25.
- Some officials consider bank loan terms to be tighter than expected.
- Two Fed officials supported keeping interest rates constant in July.
- Most Fed officials see 'significant' upside risks to inflation
- Inflation risks may require further tightening.
- Participants stated that there was a gradual slowdown in economic activities.
- Although inflation has been moderate since the middle of last year, it remains well above the 2% target.
- Respondents still see below-trend growth and a softer labor market as necessary to restore economic stability.
- Some officials see the rise in housing prices as a sign that the industry's response to rate hikes has reached its peak.
- Amid uncertainty over monetary policy delays, respondents said rate hikes were working as intended.
- Officials will assess next rate decisions based on the 'total' of data on the economy and inflation
- Inflation risks may require further tightening.
- Participants stated that there was a gradual slowdown in economic activities.
Bazı katılımcılar politikanın yanlışlıkla çok fazla sıkılaştırılması riskine karşı uyarıda bulundu. - Most respondents said inflation risks may require further rate hikes.
While the Fed raised the benchmark overnight rate to the 5.25%-5.50% range at its July 25-26 meeting, Fed Chairman Jerome Powell said at the post-meeting press conference that this may not be the last in a round of aggressive rate hikes that began in March 2022 to offset the fastest inflation boom since the 1980s. he had said.
However, Powell also said that “pieces of the puzzle” were starting to fall into place to reduce inflation; these include improving supply chains, decreasing demand for workers and tightening credit conditions.
*Not investment advice.