Most Fed employees tend to raise interest rates by 1/2 point in the “next few meetings”

Most senior Federal Reserve officials “estimate” that a 1/2-point increase in the US base interest rate “is likely to be appropriate for the next few meetings,” according to the minutes of the central bank’s last strategic session in early May. . After the meeting on May 3-4, the bank raised the interest rate on short-term funds by 50 basis points. “No participants” also suggested that price pressures “may not worsen anymore”, but they acknowledged that it was too early to be sure. The war in Ukraine and the blockade in China could worsen inflation in the short term, they noted. The inflation rate, as measured by the consumer price index, rose 8.3% in the 12 months ended April, well above the Fed’s 2% target.