Federal Reserve officials expected higher interest rates would remain in place until inflation cools down, according to the highlights of the September FOMC meeting published on Wednesday.
However, there was a broad agreement that the Fed would slow down the pace of the rate hikes after December, as there were fewer risks related to taking too much action compared to prematurely ending the policy tightening.
Many participants pointed out it would be appropriate to maintain the rates for some time once they reach a sufficiently restrictive level, until there was compelling evidence that inflation was returning to the 2% target.
According to market analysts, the Fed is expected to hike rates until 4.75% and then make a pause. There were no major changes at Wall Street following the report’s release.