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Fed May Accelerate Rate Hikes
Some members of the Federal Reserve say a “slightly steeper” series of interest rate hikes may be necessary over the next few years to offset an expected upswing in inflation.
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Some members of the Federal Reserve say a “slightly steeper” series of interest rate hikes may be necessary over the next few years to offset an expected upswing in inflation.
Most members of the central bank continue to favor a slow and gradual increase in rates, according to minutes released today of the Fed’s March meeting. But members also note that, at some point, the Fed’s policies are likely to move from bolstering economic growth to a neutral or restraining position.
The Fed cut its prime rate from 5.25 in mid-2007 to 0.25% at the end of 2008 and held it there until the end of 2015. The rate was raised one-quarter point to 1.75% last month.
The bank has said it intends to increase the rate to 2% by the end of this year and to 2.5% in 2019 and 3% in 2020.
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