Federal Reserve policymakers concluded last month that they would accelerate their tightening of credit if inflation failed to slow in the coming months.
Most officials agreed that faster interest rate hikes would be needed “if inflation does not move down” as the Fed's policymaking committee expects, accordingThe minutes underscore the urgency that the Fed under Chair Jerome Powell feels about reining in a sharp spike of inflation, which has persisted longer and broadened to more industries than the policymakers had expected.
“The Fed is behind the curve,” said James Orlando, senior economist at TD Economics. “It needs to catch up, which will hopefully cool some of the inflationary froth.”, Powell said Fed officials would have"humility" and be “nimble” in their rate decisions. He also said then that the policymakers are “of a mind to raise the federal funds rate at the March meeting, assuming that conditions are appropriate for doing so.
Investors are anticipating seven quarter-point rate hikes this year, according to futures markets, up from just four a month ago.since the government released an inflation report last week that showed prices rising faster than expected.
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