FOMC Minutes Note Support for Policy Firming if Inflation Stays Elevated

The April FOMC minutes reveal a more hawkish stance, with a majority of participants open to additional rate hikes if inflation remains persistently high and many favoring the removal of the easing bias from forward guidance.

Key Takeaways

• 1.A majority of FOMC participants are willing to consider further policy firming if inflation remains persistently above the 2% target.
• 2.Participants generally agree that the fed funds rate will need to stay at its current level for longer than previously anticipated due to elevated inflation.
• 3.Goldman Sachs staff revised their GDP growth outlook upward and noted that while inflation remains high, it is still expected to slow toward 2% by the end of next year.

Table of Contents

• BOTTOM LINE
• MAIN POINTS
• Disclosure Appendix
• Reg AC
• Disclosures
• Global product; distributing entities
• General disclosures

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