Fed minutes indicate to slower pace of rate hikes

The US Federal Reserve Board and the US Federal Open Market Committee (FOMC) on Wednesday released the minutes of the Committee meeting held on November 1-2, 2022.

Post its November 2022 meeting, the US Federal Reserve decided to raise the target range for the federal funds rate to 3-3/4 to 4%.

The minutes of the meeting show that the Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

The Committee stated that it will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments while deciding on the pace of future increases in the target range.

The Committee remains highly attentive to inflation risks as inflation continues to remain elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures. The Russia's war against Ukraine has created additional upward pressures on inflation and is weighing on global economic activity.

"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals, the US FOMC stated.

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