The Federal Reserve meeting concluded with the conclusion that raising interest rates is "likely"

The Federal Reserve meeting concluded with the conclusion that raising interest rates is "likely"

The Federal Reserve of the United States has released a summary of its June meeting. Here are some important points to note:

1. At the recent Central Bank meeting, members were worried that inflation may accelerate in the future. They raised their worries about a potential return of inflationary pressures.
2. The US banking system is robust & reliable, meaning it should not be impacted by any downturn in the economy. Credit availability is expected to remain unaffected.
3. Federal Reserve members view the effects of rate hikes as being positive & in line with their expectations.
4. Fed members expect the labor market to experience a decrease in combined domestic product & an increase in unemployment rate as the economy adjusts.
5. Members think that the US economy is already slowing down & anticipate weaker GDP figures.
6. Confirmations have been made that inflation levels are currently extremely high. However, without further evidence, it is uncertain whether these levels will decrease again in the near future.
7. The majority of members agree that the current inflation situation necessitates an increase in interest rates.
8. Some members expressed worry about the possible negative impacts of overly strict monetary policies.
9. In July, two members of the Federal Reserve voted against increasing interest rates & instead chose to keep them at 5.25%.
10. Interest rate expectations have changed slightly following the release of minutes from the July Fed meeting. The November futures rate rose from 5.425% to 5.435%, indicating that the market now expects a smaller hike in interest rates of 10 basis points, instead of the 25 basis points increases seen previously.