FOMC minutes confirm Fed’s priority to fight inflation; US job growth remains solid

The FOMC minutes released this week showed further evidence that the Feds are centered on containing inflation. Investors cheered this week, though fears of a recession linger.

FOMC policymakers judged that an increase of 50 or 75 basis points "would likely be appropriate at the next meeting" given the current economic outlook. They also "recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist." With the potential for the firmer policy to slow growth, Fed officials also removed language from the June policy statement that "indicated an expectation that appropriate policy would result in a return of inflation to 2% and a strong labor market."

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