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'Most' Fed officials saw 50 bps rate hikes in June and July, show minutes

The 50-basis-point rate increase this month was the first of that size in more than 20 years, and has set the Fed on course for a quick tightening of monetary policy

Federal Reserve Board building on Constitution Avenue is pictured in Washington. Photo: Reuters
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"A number" of Fed participants said data had begun to indicate that inflation "may no longer be worsening." But even they agreed it was "too early to be confident that inflation had peaked."

Reuters Washington
All participants at the Federal Reserve's May 3-4 policy meeting backed a half-percentage-point rate increase to combat inflation they agreed had become a key threat to the economy's performance and was at risk of racing higher without central bank action, newly released minutes of the session showed.
 
The 50-basis-point rate increase this month was the first of that size in more than 20 years, and has set the Fed on course for a quick tightening of monetary policy, with "most participants" judging that further half-percentage-point increases would "likely be appropriate" at upcoming Fed sessions in June and July, according to

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First Published: May 25 2022 | 11:48 PM IST

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