Investors reacted with trepidation to the release of the Fed’s meeting minutes on Wednesday, which showed that the central bank recognized that inflation was cooling in the economy, but said labor markets “remained very tight, contributing to continuing upward pressures on wages and prices."
Nearly all Federal Reserve policymakers rallied behind a decision to further slow the pace of interest rate hikes at the U.S. central bank's last policy meeting, but also indicated that curbing unacceptably high inflation would be the "key factor" in how much further rates need to rise.
"Almost all participants agreed that it was appropriate to raise the target range of the federal funds rate 25 basis points," with many of those saying that would let the Fed better "determine the extent" of future increases, said the minutes.
