26/05/2022 08:04
“Most attendees noted that further rate hikes of 50 basis points would be appropriate in the next two meetings.” This is what we read in the minutes of the Fomc, the monetary policy arm of the Fed, relating to the last meeting in early May when, for the first time in 20 years, Jerome Powell’s Fed raised rates by 50 basis points, in the range between 0.75% and 1% -.
The minutes state that “a restrictive stance of monetary policy could be appropriate depending on the evolution of the economic outlook and the risks on the outlook itself”.
The Fed therefore indicated that further tightening of 50 basis points could be necessary, even beyond those foreseen for the next two meetings of the FOMC, to curb the acceleration of inflation.