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11/27/2022 12:00:00 AM
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Fed Minutes Hint At Slower Pace Of Interest Rate Hikes The Federal Reserve released the minutes of its early November monetary policy meeting on Wednesday, providing further evidence the central bank is considering slowing the pace of its interest rate hikes.
The minutes said a "substantial majority" of meeting participants judged that a slowing in the pace of rate hikes would likely "soon be appropriate."
A slower pace of rate hikes would better allow the Fed to assess progress toward its goals of maximum employment and price stability, the minutes said.
The Fed added, "The uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited regarding why such an assessment was important."
However, a few other participates suggested it could be advantageous to wait until the rates were more clearly in restrictive territory and there were more concrete signs that inflation pressures were receding significantly before slowing the pace of rate hikes.
The minutes also said participants agreed further interest rate increases would be appropriate in order to attain a sufficiently restrictive stance to bring inflation down over time.
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