At the start of the pandemic, US central bank officials were united on the need to shore up the world’s largest economy and stave off a financial crisis by slashing interest rates to zero and buying trillions of dollars of assets.
But as the Federal Reserve prepares to unwind that unprecedented monetary support in the face of surging inflation, divisions have emerged among its policymakers over how — and how quickly — to withdraw the stimulus that has been in place for nearly two years.
Minutes from January’s meeting of the Federal Open Market Committee, released on Wednesday, showed that officials agree on one thing: the first US interest rate rise since 2018 will be implemented “soon”, all but guaranteeing an increase in March.