The Federal Reserve released the minutes from its September meeting yesterday, and it looks as if we will be in an environment of rising interest rates for some time to come. A majority of top Federal Reserve officials believe that interest rates will have to continue to increase until the economy slows down.
The length of these interest rate hikes was a matter of some debate. A “few” officials thought policy would have to remain “modestly restrictive for a time,” while an additional “number” thought policy would need to be restrictive only “temporarily.”
At the September meeting, Fed officials voted to lift their benchmark federal-funds rate to a range between 2 percent and 2.25 percent. Fed officials have said that a 3 percent fed funds rate would be the “long-run” neutral level of interest rates, neither boosting nor slowing growth.