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Further rate increases will be possible if inflation does not fall sharply, as forecast by the Fed.<\/p>\n
Among the risks, officials cited stronger economic growth, as well as the end of improvements in supply chains and a rebound in commodity markets. The latter two factors have contributed in recent months to a slowdown in consumer price growth.<\/p>\n
Some committee members noted that its decisions should balance the risks of unintended policy tightening against the costs of insufficient rate hikes.<\/p>\n
On July 26, the Federal Reserveraised<\/a> the target range for the federal funds rate by 25 basis points\u2014to 5.25-5.50% annually. The decision followed after a pause at the June meeting <\/a>.<\/p>\n Earlier, the U.S. Bureau of Labor Statistics stated that consumer inflation on an annual basis decelerated from 4% to 3%<\/a>. Against this backdrop, Fed Chair Jerome Powell said the agency would continue to raise interest rates<\/a>, but not as aggressively as before.<\/p>\n The futures market remains skeptical about tightening policy in September, though the probability of such a scenario after the minutes rose from 12% to 13%. In November and December such odds are traders’ estimates as one to two. No significant repricing occurred over the past 24 hours.<\/p>\n According to the minutes, the Fed staff’s baseline forecast no longer assumes a recession this year. In March, amid the banking crisis, such a scenario was not ruled out <\/a>.<\/p>\n As reported in August 2023, Zak Pandl, Grayscale Investments’ managing director of research, linked the possibility of a crypto market rebound with a “soft landing” of the US economy <\/a>.<\/p>\n![\"image-525\"](\"https:\/\/u1f987.com\/wp-content\/uploads\/image-525.webp\")