It seems that the Fed’s appetite for a rate hike is still open

It seems that the Fed’s appetite for a rate hike is still open,
The Fed did not care about any risks related to raising interest rates to this extent in that short time
and continued to tighten in the short term to reach its goal of curbing inflation and bringing it to satisfactory levels.

The Fed appears to have begun to recognize the magnitude of the danger that the rush to increase interest rates entails,
and it is evident from them that the Fed is still indecisive about rising interest rates in the near future.

This division was evident in the vote to keep rates unchanged at the meeting,
with seven members voting for a rate hike and five against it.
The minutes also showed that there was a discussion among members
about changing the language in their statement to signal a potential rate hike later this year,
However, no agreement was achieved on this point.
where a large number of participants indicated the need to complete the march
and go in the direction of raising interest rates and tightening economic policies,
but this must be done gradually. To avoid the economic and financial risks that the world is going through at present.

Many participants agreed that the cost of taking a few measures to reduce inflation
is likely to outweigh the cost of taking more extensive measures,
as the impact of the attempts to rein in inflation that the Fed is now making,
the meeting resulted in the approval of the US central bankers to boost the
borrowing rate by 75 basis points for the third time in a row,
the target range was raised from 3% to 3.25%,
as stated in today’s publication of the Federal Reserve meeting.

The expectations of federal officials and policymakers came as many
participants noted that as policy moves into a restrictive area,
risks will become more bilateral,
indicating the development of the negative risk that the cumulative limitation on
aggregate demand would be greater than what is necessary to bring inflation to levels close to two
The notion of rising it to 4.4% by the end of the year has become plausible,
It is also expected to grow to 4.6 million in the coming year.
Last month’s participant expectations and projections were also made public.
These subsequent actions had a considerable influence on the stock market,
especially when the minutes of this meeting were made public.
Bond yields remained low, and traders wagered that the Fed will hike interest rates by another 75 basis points next month.

It is also expected to raise the unemployment rate to 4.4% due to
high borrowing costs and a significant growth slow that may reach 1.2% during 2023.

It seems that the Fed&#8217;s appetite for a rate hike is still open

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It seems that the Fed’s appetite for a rate hike is still open