According to the minutes of the last monetary policy meeting, US central bank officials warned last month that high inflation could turn into a long-term situation, and stressed their willingness to continue raising interest rates to mitigate the price hike.
According to Arab Net, the minutes of the meeting, which was held on June 14-15, stated that officials are concerned that inflation-related pressures are not showing signs of abating, which means that the price hike may continue more than they previously expected.
According to the meeting minutes, participants considered that an increase of 50 or 75 basis points would likely be appropriate at the monetary policy meeting later this month.
Many policymakers have indicated that there is a significant risk that high inflation will become ingrained if the public begins to question the determination of the committee, the Federal Open Market Committee (FOMC) that sets Fed policies.
But the report was clear about the officials' intention to continue efforts to calm the economy at least until the end of the year.
The minutes of the meeting detailed how the US central bank was asked to make a significant increase in interest rates to address inflation rates and concern about a loss of confidence in the authority of the Federal Reserve.
The 0.75 percentage point increase that emerged from the meeting was the first such increase since 1994.
