MADRID, 25 May. (EUROPA PRESS) –
The majority of the central bankers who participate in the monetary policy meetings of the United States Federal Reserve (Fed) are in favor of carrying out increases of 50 basis points in interest rates at the organization’s meetings that will take place in July and July, according to the minutes of the May meeting, published this Wednesday.
The Fed, like the vast majority of the world’s central banks, meets approximately every six weeks to decide on changes to its monetary policy that are consistent with its goals of price stability and full employment.
At the meeting that ended on May 4, the Fed decided to raise rates by 50 basis points, placing them within a target range of between 0.75% and 1%. In addition, the monetary authority plans to reduce its balance in the summer months by 47,500 million dollars (44,567 million euros per month. Subsequently, from September, the monthly reduction rate of the balance will be 95,000 million dollars (89,134 million of euros).
In the minutes of the May meeting, it is reflected that the majority of central bankers agreed that raising 50 basis points in the next two meetings was appropriate.
The president of the Federal Reserve, Jerome Powell, already announced in the press conference after the May meeting that increases in this volume were on the table. But the minutes published this Wednesday reflect a greater certainty that these increases will take place.
In any case, several participants in the meeting also warned that there were possible unanticipated effects on financial market conditions due to the reduction of the Fed’s balance sheet. Others also warned that monetary tightening could “interact” with liquidity vulnerabilities. of the sovereign debt markets and with the intermediation capacity of the private sector.