The Federal Reserve Board, the central bank of the United States, released the minutes of last month's meeting, which decided to raise rates exceptionally by 0.75%, and participants prioritized controlling inflation even if the economy slowed down. It turns out that they shared the perception that they should continue to tighten their monetary policy.
The Fed decided at a meeting last month to raise rates by 0.75% for the first time in about 27 and a half years, with no signs of convergence in inflation.
According to the minutes released on the 6th, participants were unusually wary of the unexpected increase in consumer price inflation in May, which was announced shortly before the meeting. You can see the background that led to the decision.
In addition, participants confirmed the recognition that inflation control is important even if the pace of economic growth is temporarily slowed down, and that if inflationary pressure continues, stricter policies are appropriate. I was sharing.
A sharp rate hike will have the effect of depressing demand for home purchases and capital investment, but the minutes indicate that the central bank should continue to tighten monetary policy by prioritizing inflation control even if the economy slows down. You can see.
In line with this policy, the Fed will consider raising rates by 0.75% or 0.5% at a meeting later this month.