Fed officials believe a 50 or 75 basis point hike is likely at the FOMC meeting in July - Fed meeting minutes
Many FOMC participants saw a significant risk of entrenched inflation. Even more restrictive policies are possible in the future.
Participants at the June meeting agreed that the inflation outlook had worsened, requiring a 0.75% rate hike. To date, participants have seen little evidence that supply constraints are loosening enough to help control inflation.
Most participants saw downside risks to GDP growth, including the possibility that a Fed rate hike would have a greater impact than expected. The Fed expects inflation to remain above 2% for some time.
