Federal Reserve officials “generally agreed” last month that the need for further interest rate increases “had become less certain,” with several saying that the quarter-percentage-point hike they approved might be the last, according to minutes of the May 2-3 meeting released on Wednesday.
Others cautioned the U.S. central bank needed to keep its options open given the risks of persistent inflation, which is still running at more than two times the Fed’s 2% target.
“Several participants noted that if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary,” the minutes said, adding weight to expectations the Fed is likely to pause its aggressive rate-hike campaign at its June 13-14 meeting.
Yet there was division about the path ahead.
Read More : Fed’s Decision on More Rate Hikes Becomes Less Definite Following May Meeting