WASHINGTON, Jan. 5 (XINHUA) – Interest rates will remain high until the US Federal Reserve is confident that high inflation is on the way to stabilising, according to Fed meeting minutes released this week.
The minutes are from the Federal Reserve’s December meeting, which saw the interest rate raised by half a percentage point after several other hikes in the previous months.
“Respondents generally noted that a moderate policy stance needs to be maintained until incoming data provides confidence that inflation is on a sustainable downward path towards 2%,” said the minutes, which were published in the Fed website.
The minutes said that such a development “is likely to take some time”.
The US is experiencing the worst inflation in 40 years and the central bank raised interest rates several times last year in an attempt to fulfill the Fed’s mandate to keep inflation at 2%.
