Fed Officials Are Worried About the Risks of Doing Too Little on Inflation
- Policymakers see risks rising as rates become restrictive
- Cost of too little action outweighs costs of too much
This article is for subscribers only.
Federal Reserve officials committed to raising interest rates to a restrictive level in the near term and holding them there to curb inflation, though several said it would be important to calibrate hikes to mitigate risks.
“Several participants noted that, particularly in the current highly uncertain global economic and financial environment, it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook,” according to minutes from their Sept. 20-21 gathering released Wednesday in Washington.