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5/25, 8:04 PM (Source: TeleTrader)
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Fed sees rising inflation risks, officials favor 50 bp rate hikes

Federal Reserve officials are seeing increasing inflation risks due to coronavirus-related supply issues and higher energy prices, according to the highlights from the May meeting of the Federal Open Market Committee published on Wednesday.

The implications of the Russian invasion on Ukraine for the United States economy remain uncertain, the report added, arguing COVID-19 lockdowns across China have contributed to issues with global supply chains.

Most officials backed the 50 basis point increases in Fed interest rates at the upcoming FOMC meetings, noting a more "restrictive policy" could become appropriate. Many voting FOMC members saw the Fed as "well-positioned" for a post-tightening later this year.

Baha Breaking News (BBN) / ND