Federal Reserve officials concluded the need to further lift interest rates had become “less certain” as economic risks had increased, although the US central bank remained open to additional rate rises if warranted by the data, according to an account of their latest meeting.
Minutes from the May meeting, when the Federal Open Market Committee delivered its 10th consecutive rate rise in just over a year, confirmed that the US central bank is considering whether to pause to its aggressive monetary tightening campaign as it assesses how much more it needs to squeeze the economy to control inflation.
Citing both the “lagged effects” of the Fed’s previous rate rises, as well as the spectre of tighter credit conditions stemming from the recent bank failures, participants “generally agreed” that “the extent to which additional increases in the target range may be appropriate after this meeting had become less certain”.