(MENAFN) According to meeting minutes from the United States Federal Reserve, policymakers believed that raising interest rates would be prudent unless inflation dramatically decreased.
The meeting's minutes from July 26–27 showed, "with inflation remaining well above the Committee’s objective, participants judged that moving to a restrictive stance of policy was required to meet the Committee’s legislative mandate to promote maximum employment and price stability."
For the second consecutive month, the Fed increased its benchmark interest rate by 75 basis points, the quickest rate of tightening in forty years.
Based on the central bank, it would probably become appropriate at some time to slow the rate at which the policy rate is set.
It added, "some participants indicated that, once the policy rate had reached a sufficiently restrictive level, it likely would be appropriate to maintain that level for some time to ensure that inflation was firmly on a path back to 2 percent"
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