The minutes of the last meeting of the US Federal Reserve, held on November 3, showed that monetary policy makers are ready to raise interest rates if the inflation rate in the United States continues to rise, which reached its highest level in 31 years last October.
According to the minutes, “many participants in the meeting indicated that the FOMC should be prepared to adjust the pace of asset purchases and raise interest rates sooner than current expectations, if inflation continues to accelerate from levels consistent with the committee’s objectives.”
The Fed monetary policy makers also emphasized the need for a cautious approach with regard to economic data, but also indicated that they will not hesitate to take appropriate measures to resolve inflation pressures that pose risks to long-term price stability and employment goals.
It is noteworthy that the last meeting of the Federal Reserve concluded that it began gradually reducing asset purchases, starting from this month, by $15 billion per month.
The minutes also showed that “several members noted that the committee should be prepared to adjust the pace of asset purchases, in order to give the Fed the ability to raise rates sooner than expected.”