The new date is August 17, 2022.
According to the minutes from the central bank, the Federal Reserve is unlikely to take its foot off the pedal until inflation eases in a meaningful way.
The chairman of the Federal Reserve.
Fed officials emphasized that a slowdown in demand would be an important role in reducing inflationary pressures and most participants said that it would likely take some time before the bulk of monetary policy tightening has a meaningful impact.
Some officials acknowledged that there was a risk that the central bank could raise rates and tighten financial conditions more than necessary.
At its last policy meeting in July, the Federal Reserve raised interest rates for the second time in as many months in order to bring down inflation, which remains elevated and is yet to decline in a meaningful way.
While Fed officials have been adamant that they will keep raising interest rates until inflation is brought under control, investors don't know how long the Fed will keep raising rates.
The central bank is expected to reverse the pace of rate increases by next year, as recent economic data shows that consumer prices cooled slightly in July.
As of Wednesday, traders were almost evenly split on whether the Fed will raise rates by another 75 basis points in September or 50 basis points.
According to the Fed minutes, participants judged that moving to a restrictive stance of policy was necessary to promotemaximum employment and price stability. As the stance of monetary policy tightened further, it likely would be appropriate at some point to slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation, according to officials.
The stock market has rallied in recent weeks due to growing optimism about a possible pivot in monetary policy from the Federal Reserve. The S&P 500 is on track for a fifth consecutive week of gains.
It will take more evidence than just one month of data to show that inflation is cooling, according to experts. "To argue for material near-term upside in markets, one needs to be very bullish about intense disinflation and the start of a Fed easing cycle", says Vital Knowledge founder Adam Crisafulli.
Goldman predicts that the Fed has a long way to go as it tries to tame inflation without causing a recession.
Has inflation peaked after consumer prices cooled slightly in July? There is a magazine called "Forbes."
The experts are warning of a bear market rally.
There are more Fed officials warning that the market is getting ahead of itself.
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