Finance

Fed Minutes Released – Breaking Economic News

The Fed released the minutes of the Federal Open Market Committee (FOMC) meeting, which took place from September 21-22.

The minutes of the last meeting, where the policy rate remained constant in the range of 0-0.25 percent, noted that the Fed is close to reaching its targets and may soon begin to normalize monetary policy by reducing the pace of purchase of assets.

The minutes reiterated that a moderate policy change in asset purchases would not serve as a direct signal about interest rate policy, and it was stated that the conditions required to increase interest rates were different.

In the minutes, it was reported that Fed officials assessed that a gradual contraction process that will end in the middle of next year may be appropriate, provided that the economic recovery is generally on track.

– Some Fed officials expect inflation to remain high in 2022

“Members noted that if a decision is made to start purchasing reductions at the next meeting, the reduction process could begin with monthly purchase programs in mid-November or mid-December,” the Fed minutes said. a statement was included.

The minutes also noted that some Fed officials at the meeting expressed concern that current inflationary pressures could last longer than anticipated, and most members said supply disruptions and labor shortages could last. more, the risks of inflation to the rise, and that this could have major consequences. and there were longer lasting effects on prices and wages than had been assumed.

“Some members think that inflation will remain high in 2022, with upside risks,” the minutes said. information was also shared.

The minutes noted that several members cited downside risks to inflation, and most Fed officials maintained that current price increases were temporary.

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