By: NY Times
August 17, 2022
Federal Reserve officials viewed their efforts to tame inflation as beginning to have an effect, according to the minutes of their meeting in July, but they also remained committed to further raising interest rates as prices stay too high for comfort.
Fed policymakers in recent months have become increasingly aggressive in their efforts to curb inflation, which this spring hit a four-decade high. In June, the central bank raised its benchmark interest rate three-quarters of a percentage point, the largest increase since 1994. They followed that up with another, equally large rate increase last month.
It is a near certainty that the Fed will raise rates again when central bank officials next meet Sept. 20-21. The question is by how much. Another three-quarter-point increase would be a strong indication that policymakers are determined not to relax their efforts until they see clear evidence that inflation has slowed. A half-point increase, though still large by historical standards, would suggest that the Fed believes it can ease up, if only slightly.