And the Federal Reserve, which carries out the functions of the central bank, decided in June to stop raising the main interest rate for the first time since March 2022 after increasing it ten times, in order to assess the impact of this increase on the US economy.
Most Fed Monetary Policy Committee officials believe that two more increases are necessary this year to keep inflation low, according to the minutes of the Federal Reserve’s meetings.
Committee member Christopher Waller said, “I consider two additional 25-point increases to the key interest rate (…) as necessary this year.”
He added that he was in favor of halting the increase in June, noting that “waiting six weeks is prudent risk management.”
And he believed that the June data was “reassuring” and that he saw “no reason not to take a decision on the first two increases at our meeting later this month.”
The next meeting of the Federal Reserve will be held from July 25-26.
This comes a day after the Federal Reserve released a report that indicated the economy has rebounded since May.
Any increase in interest rates would raise the benchmark interest rate to the highest level in two decades.
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