![]() ![]() On the future path of monetary policy, committee members stated that "in light of the lagged effects of cumulative tightening in monetary policy and the potential effects on the economy of a further tightening in credit conditions, the extent to which additional increases in the target range may be appropriate after this meeting had become less certain." Several participants noted however, that if the economy progressed in line with their current projections, future rate hikes may not be warranted. ![]() When discussing credit conditions, participants noted that, "stress in the banking sector would, in coming quarters, likely induce banks to tighten lending standards by more than they would have in response to higher interest rates alone." Participants noted however, that the economic impact was uncertain at this time.Nonetheless, job gains had been robust in recent months, and the unemployment rate had remained low. On the current state of the economy, the Committee members noted that "economic activity had expanded at a modest pace in the first quarter.The minutes from the May 2-3 Federal Open Market Committee (FOMC) meeting reiterated that curtailing inflation remains the principal objective of the Fed.Fed minutes depict uncertainty surrounding future rate hikes ![]()
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