Key Takeaways From Minutes of Fed’s March Decision on Rates

Here are key takeaways from minutes of the Federal Reserve’s March 21-22 meeting, released Wednesday:

(Bloomberg) — Here are key takeaways from minutes of the Federal Reserve’s March 21-22 meeting, released Wednesday:

Policymakers scaled back expectations for interest-rate hikes this year after banking turmoil; officials stressed need to watch incoming data to see how deeply an anticipated credit crunch would slow economy, with some calling for flexibility on coming decisions
March decision to raise interest rates by 25 basis points was unanimous among all 18 officials but reflected a middle ground, with one group of policymakers weighing a pause and another contemplating a 50 basis-point hike
Fed staff projected a “mild recession” starting later in 2023, followed by a recovery in subsequent two years
Officials judged the worst bank turmoil was likely limited to a “small number of banks with poor risk-management practices and that the banking system remained sound and resilient”
Discussion noted risks to inflation in both directions, with resilient labor demand pushing prices higher but a credit crunch having potential to slow inflation

For Bloomberg’s TOPLive blog on the Fed minutes, click here

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