The latest meeting minutes from the U.S. Federal Reserve show that officials at the central bank
plan to continue raising interest rates until inflation is substantially lower.
During a meeting in which the central bank approved its most recent 0.75 percentage point
interest rate hike, policymakers at the central bank said they remain committed to bringing down
inflation that continues to run well above the 2% target.
Fed officials did not provide any guidance on future rate increases and said they will watch
economic data closely before making any future decisions. However, economists expect a 50-
basis point rate hike at the next Fed meeting in September.
The meeting minutes also show that once inflation comes down, the Fed is willing to ease up on
interest rate increases, a view that has led stocks to rally in recent weeks.
However, Fed officials also said that there were few signs that inflation is slowing in a
meaningful way and stressed their resolve to bring inflation down to the 2% target.
The U.S. Consumer Price Index (CPI) was flat in July from June but was up 8.5% from a year
ago. The Federal Reserve has raised interest rates by three-quarters of a percentage point at its
last two meetings to try and dampen inflation.
The meeting minutes noted that some members worry the central bank could overdo it with
interest rate hikes and push the American economy into a recession, underlining the importance
of relying on economic data.