Fed sees ‘more restrictive’ policy as likely if inflation fails to come down, minutes say

Federal Reserve officials in June emphasized the need to fight inflation even if it meant slowing an economy that already appears on the brink of a recession, according to meeting minutes released Wednesday. In raising benchmark borrowing rates by three-quarters of a percentage point, central bankers said the move was necessary to control cost-of-living increases running at their highest levels since 1981. Members said the July meeting likely also would see another 50- or 75-basis point move. A basis point is one one-hundredth of 1 percentage point. “Participants concurred that the economic outlook warranted moving to a restrictive stance of policy, and they recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist,” the document said.
Source: CNBC – Bonds