Federal Reserve hikes: “despite a .. recession later this year”
Posted By RichC on April 12, 2023
Guess when this Fed news came out?
High inflation and tight labor markets led Federal Reserve officials to signal they could raise interest rates at their next meeting despite a higher likelihood the economy would enter a recession later this year.
Fed officials considered skipping a rate increase at their meeting last month but concluded that regulators had calmed banking-sector stresses enough to justify a quarter-point rate increase, according to minutes of the March 21-22 gathering released Wednesday.
Looking ahead, officials concluded that given the strength of price pressures and demand for labor, “they anticipated that some additional policy firming may be appropriate” to bring inflation down to the central bank’s 2% goal, the minutes said.
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