The FOMC minutes released yesterday had the same information for the American public that the Federal Reserve will continue to raise rates until inflation clearly reaches 2%.
The Fed's hawkish monetary policy aims to raise the base federal funds rate to a target of just above 5% and hold that rate high until incoming data gives confidence that inflation is on a sustained path to 2%.
Market participants interpreted the incoming data as indicating a decrease in inflationary risks. Against this background, market participants felt that the FOMC is likely to further slow down the pace of rate hikes at the current meeting, and many expected the committee to increase the target range for the federal funds rate by a percentage point.
According to Bloomberg News, U.S. central banks have raised interest rates by a quarter of a point, easing after a half-point hike in December and four consecutive massive 75 basis point hikes.
The move raised the base discount rate to between 4.5% and 4.75%. Both Chairman Jerome Powell and the minutes indicate that officials are ready to raise rates even further to bring about an economic slowdown that will keep inflation in check.