Reporter Chen Shenglong
am Beijing time on ThursdayonlinecasinofreesignupbonusnodepositrequiredrealmoneyThe minutes of the latest policy meeting released by the Federal Reserve Board showed that recent inflation data was disappointing and high interest rates would need to last longer. Many officials even said that policies should be further tightened, that is, raising interest rates.
"Several participants mentioned their willingness to tighten policy further if inflation risks manifest in a way that requires action." The minutes of the meeting stated.
The Federal Reserve holds eight interest-rate meetings every year. The minutes of the meeting are a detailed explanation of the policy formation process and the logic behind the policy, and are generally announced three weeks after the meeting. The minutes of the meeting released this time correspond to the policy meeting held from April 30 to May 1. At this meeting, the Fed maintained its target range for the federal funds rate at 5.onlinecasinofreesignupbonusnodepositrequiredrealmoney.25% to 5.5% unchanged, while announcing a slowdown in the pace of shrinking the balance sheet starting in June.
The latest meeting minutes mentioned that data released during the two policy meetings showed that inflation was more persistent than previously expected, and the economy generally showed resilience, resulting in major changes in policy expectations. The policy interest rate path derived from futures prices shows that there were less than two interest rate cuts by the end of the year, each time of 25 basis points. Earlier this year, the market was betting that the Fed would cut interest rates six times during the year, by 25 basis points each time.
Since the beginning of this year, inflationary pressures in the United States have risen again. In the first quarter, the Fed's most important inflation indicator, the core personal consumption expenditure (PCE) price index excluding food and energy, increased by 3.7% year-on-month, almost double the previous value, indicating that core inflation remains stubborn.
After the minutes of the meeting were released, all three major U.S. stock indexes closed down on Wednesday. The Dow Jones index fell 0.51% to 39,671.04 points; the Nasdaq index fell 0.18% to 16,801.54 points; and the S & P 500 index fell 0.27% to 5,307.01 points.
The Chicago Mercantile Exchange's Fed Watch tool showed that the market expects the Fed to cut interest rates by at least 25 basis points at its September meeting to be 59%, significantly down from 65.7% the previous trading day.