United States Federal Reserve's Federal Open Market Committee (FOMC) members unanimously agreed that the cuts in interest rates wouldn't be appropriate in 2023 and that more hikes are to follow, it was revealed on Wednesday in the central bank's minutes from the December meeting.
Due to "persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy," the minutes read. The officials noted that the upside inflationary risks were the "key factor in shaping the outlook for policy."
As inflation continues to be "unacceptably high," the members noted that a "sustained period of below-trend real GDP growth would be needed to bring aggregate supply and aggregate demand into better balance." It was also emphasized that the Fed's deceleration in the pace of rate hikes shouldn't be seen as "a judgment that inflation was already on a persistent downward path."
