Federal Reserve officials discussed the need to keep interest rates at levels that restrict the US economy “for some time” in a bid to contain the highest inflation in roughly 40 years, according to an account of their most recent meeting.
Minutes from the meeting, at which the US central bank raised its benchmark policy rate by 0.75 percentage points for the second month in a row, signalled policymakers were intent on pressing ahead with tightening monetary policy, but aware of the risks of overdoing it.
Given the enormity of the inflation problem and “upside risks” to the outlook for price growth, officials backed raising interest rates to the point where they act as a drag on economic growth.