Federal Reserve officials earlier this month stressed the need to raise interest rates quickly and possibly more than markets anticipate to tackle a burgeoning inflation problem, meeting minutes released Wednesday showed. Not only did policymakers see the need to raise benchmark borrowing rates by 50 points, but they also said similar hikes likely would be necessary at the next several meetings. They further noted that policy may have to move past a “neutral” stance where it is neither supportive nor restrictive of growth, an important consideration for central bankers that could echo through the economy. “Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings,” the minutes stated. In addition, Federal Open Market Committee members indicated that “a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook.”
Source: CNBC – Bonds
