MADRID, 23 Nov. (EUROPA PRESS) –
The members of the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) argued in their last meeting, held at the beginning of the month, that “soon” it would be appropriate to slow the rate of increases. of interest rates, according to the minutes of said meeting, published this Wednesday
The FOMC is the body of the Fed in charge of deciding monetary policy, similar to the Governing Council of the European Central Bank (ECB). The seven members of the Fed’s Board of Governors sit permanently on the Committee, as well as five members on a rotating basis from among the presidents of the entity’s 12 regional central banks.
In the meeting that took place at the beginning of the month, the Fed decided to raise interest rates by 75 basis points, to a target range of between 3.75% and 4%, the fourth such increase so far. of the year and the sixth of all 2022.
Thus, during the conclave, various participants in the meeting indicated that it would be appropriate to slow the rate of increases as rates get closer to being restrictive enough. In any case, a majority of central bankers considered that it would “probably soon be appropriate” to slow the pace of increases.
In the discussion going forward, it was commented that a slower pace would allow the Fed to better assess progress towards its full employment and price stability objectives. Above all due to the uncertain lag of monetary policy in economic activity.
In this sense, some participants in the meeting considered that slowing down the rate of increases also reduced the risk of producing instability in the financial system. On their side, other bankers took a more aggressive stance, recommending only slowing rate hikes when rates were “more clearly in tight territory” and there were more concrete signs that inflation was falling significantly.
