Daily Management Review

US Federal Reserve is leaning towards new interest rate hikes


According to the minutes of the May meeting of the US Federal Reserve (Fed), a majority of participants believe that a new 50 basis point interest rate hike at the regulator's next meetings is acceptable.

Ken Lund
Ken Lund
According to the document, "a majority of participants considered that a 50 basis point increase in the target range is likely to be acceptable for the next couple of sessions."

The Fed hiked the discount rate by 50 basis points to 0.75-1 percent per year following its meeting on May 3-4. The next meeting will be held on the 14th and 15th of June.

According to the minutes from the May meeting, participants feel it is critical to speed the transition to a neutral monetary policy. According to the watchdog, based on changes in the economic outlook and risks, a tighter policy may be justified.

The situation in Russia and Ukraine, as well as quarantine limitations in China owing to the coronavirus, represent considerable threats to the US and other global economies, according to members of the Fed's Open Market Committee. They also mentioned the possibility of higher inflation.

source: cnn.com