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Fed Minutes: Most Fed officials support a 50 basis point rise in the next two meetings
Fed officials earlier this month stressed the need to raise interest rates quickly and perhaps more than markets expect to tackle the growing problem of inflation, minutes from the meeting released on Wednesday showed.
Monetary policy makers not only saw the need to raise benchmark borrowing rates by 50 points, but also said that similar increases are likely to be necessary in the next several meetings.
This was the largest rate increase in 22 years and came as the Federal Reserve tries to bring down inflation that has reached a 40-year high.
"Most participants considered that a 50 basis point increase in the target range would likely be appropriate in the next two meetings," the minutes said.
The May 3-4 session saw the Federal Open Market Committee (FOMC) agree to a half-percentage point cut and lay out a plan, starting next June, to reduce the Fed's $9 trillion balance sheet consisting mostly of Treasuries and mortgage-backed securities.
Market prices currently see the Fed moving to a rate of between 2.5% and 2.75% by the end of the year, which would be consistent with many central bankers seeing a neutral rate.
However, the data in the minutes indicate that the Committee is ready to go further.
The meeting summary stated that "all participants affirmed their strong commitment and determination to take the necessary measures to restore price stability."
