Fed Officials Hint at Further Rate Hikes, But at a Reduced Speed

The Federal Reserve officials expressed the likelihood of further rate increases but at a slower pace during their June meeting, according to their released minutes. Officials decided to bypass rate hikes at their most recent meeting over concerns about economic growth and to assess the impact of the previous ten consecutive rate increases. They noted that tighter credit conditions, including higher interest rates, could affect economic activity, hiring, and inflation. Fed Chairman Jerome Powell has emphasized the unity among the committee members, with the majority expecting rates to remain unchanged until the end of the year, despite concerns about inflation. The labor market has improved, although there is still a significant disparity between job openings and available workers.