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 re

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

submited by

Style Pass

2022-07-06 19:30:03

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.

Members said the July meeting likely also would see another 50- or 75-basis point move on top of a 75 basis point increase approved in June. A basis point is one one-hundredth of 1 percentage point.

"In discussing potential policy actions at upcoming meetings, participants continued to anticipate that ongoing increases in the target range for the federal funds rate would be appropriate to achieve the Committee's objectives," the minutes stated. "In particular, participants judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting."

Raising benchmark borrowing rates by three-quarters of a percentage point in June was necessary to control cost-of-living increases running at their highest levels since 1981, central bankers said. They said they will continue to do so until inflation gets close to their 2% long-run goal.