Most Federal Reserve policymakers thought it likely another interest rate increase would be warranted “soon” if the U.S. economic outlook remains intact, minutes of the central bank’s last policy meeting showed.
As reported by Reuters, the readout of the meeting, released on Wednesday (May 23), also included a call by some policymakers to revise the Fed’s monetary policy statement soon to reflect that rates would be close or above long-run estimates before too long.
Fed policymakers at the May 1-2 meeting decided, as expected, to keep the benchmark overnight lending rate unchanged in a target range of between 1.5% and 1.75%.
“Most participants judged that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate … to take another step in removing policy accommodation,” the Fed said in the minutes.
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