Economics
Fed Officials Saw Need to Slow Rate-Hike Pace ‘At Some Point’
- Many participants saw risk of over-tightening policy
- Officials saw significant risk of entrenched inflation
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Federal Reserve officials agreed last month on the need to eventually dial back the pace of interest-rate hikes but also wanted to gauge how their monetary tightening was working toward curbing US inflation.
“As the stance of monetary policy tightened further, it likely would become appropriate at some point to slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation,” according to minutes of the Federal Open Market Committee’s July 26-27 meeting released Wednesday in Washington.