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FOMC minutes highlights ‘unacceptably high’ inflation
The Federal Open Market Committee (FOMC) yesterday released minutes from its June meeting, revealing the committee agrees that “inflation was unacceptably high” and that lowering inflation has been “slower than expected.”
According to the minutes, participants noted that economic activity continues to grow and the labor market remains strong. They added that banking stresses from the bank failures have receded and “conditions in the banking sector were much improved since early March.”
Additionally, they remarked that consumer spending has been higher than anticipated, leading the committee to believe that more rate hikes may be needed to lower inflation.
“The FOMC minutes reaffirm that the committee is leaning toward a hike later this month,” said NAFCU Chief Economist and Vice President of Research Curt Long. “Interim data could cause a change in course, but with just three weeks until the next meeting, time is running short. Credit unions should expect one hike in July and one additional hike in the fourth quarter.”
The FOMC will next meet July 25-26.