Aggressive hikes can provide flexibility

Showing commitment: Powell (right) is congratulated by Fed vice-chairman Lael Brainard after he took the oath of office for his second term. The central bank is determined to restore price stability as it prepares to raise rates further next month. — AFP

WASHINGTON: Federal Reserve (Fed) officials agreed at their gathering this month that they need to raise interest rates in half-point steps at their next two meetings, continuing an aggressive set of moves that would leave them with flexibility to shift gears later if needed.

While highlighting the “strong commitment and determination” of all policy makers to restore price stability, the minutes of the meeting early this month showed officials attentive to financial conditions as they prepare to raise rates further.