Fed minutes to detail debate over rate hike endgame

Minutes from the U.S. Federal Reserve’s latest meeting out Wednesday are expected to detail the breadth of debate at the central bank over how much further interest rates may need to be raised to slow inflation and cool an economy that has remained stronger than expected despite tighter Fed policy.

The two-day meeting ended on Feb. 1 with the central bank raising its target interest rate by a quarter of a percentage point, a return to a more standard rate hike size after a year of sequential three-quarter point and half-point increases.

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In a press conference following that meeting, Fed Chair Jerome Powell said the return to smaller rate hikes was meant to allow a more stepwise hunt for a possible stopping point, and that officials spent the session “talking quite a bit about the path forward” as the central bank nears what may be the end of its hiking cycle.

Source: www.reuters.com/markets/us/fed-minutes-detail-debate-over-rate-hike-endgame-2023-02-22/

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