The issuance of the details of the Federal Reserve meeting minutes

Wednesday, November 23, 2022 - 19:19
Point Trader Group

Federal Reserve officials agreed earlier this month that smaller interest rate increases should occur soon as they assess the policy's impact on the economy, according to meeting minutes released on Wednesday.

The summary of the meeting, which reflects statements made by several officials over the past several weeks, noted a slight increase in interest rates. Markets widely expect the rate-setting Federal Open Market Committee to step down to a 0.5 percentage point increase in December, after four consecutive hikes of 0.75 percentage point.

Despite hinting that smaller moves are ahead, officials said they still see little sign of inflation abating. However, some committee members expressed concern about risks to the financial system if the Fed continues to proceed at the same aggressive pace.

The minutes stated that "a large majority of the participants believed that slowing down the pace of increase would be appropriate in the near future." “Legacies and uncertain volumes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited for the importance of this assessment.”

The minutes indicated that small increases would give policy makers an opportunity to assess the impact of successive price increases.

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