{"id":1686890,"date":"2022-10-12T15:06:06","date_gmt":"2022-10-12T19:06:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1686890"},"modified":"2022-10-12T15:06:18","modified_gmt":"2022-10-12T19:06:18","slug":"fed-officials-worried-about-ending-inflation-battle-prematurely-minutes-show","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-officials-worried-about-ending-inflation-battle-prematurely-minutes-show\/","title":{"rendered":"Fed officials worried about ending inflation battle prematurely, minutes show"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-officials-worried-about-ending-inflation-battle-prematurely-minutes-show%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1686890&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>WASHINGTON (Reuters) \u2013     Federal Reserve officials agreed they needed to raise interest rates to a more restrictive level \u2013 and then maintain them there for some time \u2013 in order to meet their goal of lowering inflation, a readout of last month\u2019s policy meeting showed on Wednesday.<\/p>\n<p>The minutes of the Sept. 20-21 meeting showed many U.S. central bank officials \u201cemphasized the cost of taking too little action to bring down inflation likely outweighed the cost of taking too much action.\u201d<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>At the meeting, many officials said they had raised their assessments of the path of interest rate increases that would likely be needed to achieve the policy-setting committee\u2019s goals.<\/p>\n<p>That said, several participants in the discussion said it would be important to \u201ccalibrate\u201d the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook.<\/p>\n<p>At last month\u2019s meeting, Fed officials raised interest rates by three-quarters of a percentage point for the third straight time in an effort to drive inflation down from 40-year highs, and Fed Chair Jerome Powell vowed afterward that they would \u201ckeep at it until we\u2019re confident the job is done.\u201d<\/p>\n<p>Since the meeting, policymakers have been united in their comments that they see an urgent need to address inflation, which they fear risks becoming embedded, even if their aggressive policy tightening comes at a cost of higher unemployment.<\/p>\n<p>The minutes from the meeting underscored that view. Several policymakers \u201cunderlined the need to maintain a restrictive stance for as long as necessary, with a couple of these participants stressing that historical experience demonstrated the danger of prematurely ending periods of tight monetary policy designed to bring down inflation,\u201d the minutes showed. <\/p>\n<p>TURNING POINT<\/p>\n<p>The last several weeks have marked a turning point for financial markets that for much of the year had clung to a conviction that the Fed would swiftly reverse course next year and cut rates in the face of slowing growth and higher joblessness. Fed officials have openly pushed back on that expectation, saying they expect to leave rates elevated for some time after they have finished lifting them.<\/p>\n<p>As markets have fully digested the Fed\u2019s hawkishness, the result has been crushing losses for U.S. stock markets, rapidly rising yields on government debt and a surging dollar that has aggravated weak conditions in overseas markets.<\/p>\n<p>Policymaker projections released at last month\u2019s meeting show the Fed\u2019s target policy rate, currently in a range of 3.00%-3.25%, its highest since 2008, rising to the 4.25%-4.50% range by the end of this year and ending 2023 at 4.50%-4.75%. The year-end 2022 projection suggests one more 75-basis-point hike is likely at the central bank\u2019s remaining two meetings of the year. <\/p>\n<p>Recent inflation data has shown little to no improvement despite the Fed\u2019s aggressive tightening \u2013 it also announced 75-basis-point rate hikes in June and July \u2013 and the labor market remains robust with wages increasing solidly as well.<\/p>\n<p>After the release of the minutes on Wednesday, financial markets continued to reflect expectations for the Fed to raise interest rates by another 75 basis points next month, and then downshift to a half-percentage-point hike in December and a quarter-percentage-point increase early in 2023. But prices in futures contracts maturing later next year showed investors are adding to bets the Fed will reverse course and begin cutting rates in the third or fourth quarter of 2023.<\/p>\n<p> (Reporting by Dan Burns and Ann Saphir; Editing by Paul Simao)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/fed-officials-worried-about\/attachment\/file-photo-federal-reserve-board-building-in-washington-3\/\"><img decoding=\"async\" src=\"https:\/\/c3.oann.com\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2022binary_LYNXMPEI9B0YQ-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI9B0YQ-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON (Reuters) \u2013 Federal Reserve officials agreed they needed to raise interest rates to a more restrictive level \u2013 and then maintain them there for some time \u2013 in order<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1686890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1686890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1686890"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1686890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1686890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1686890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1686890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}