Source: CCTV News client
On October 11, local time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting on September 19-20, in which participants discussed the development of financial markets and the full extent of the impact of monetary tightening on the economy.
The minutes noted that data up to the time of the meeting indicated that real gross domestic product (GDP) had gained momentum in the third quarter, the labor market continued to be tight, and consumer price inflation remained high.
Participants predicted that average real GDP growth in the United States from 2024 to 2026 would be slower than the 2023 figure and would be lower than participants' estimates of potential GDP growth, due to the lagged effects of monetary policy tightening. Inflation, as measured by aggregate and core personal consumption expenditures, is expected to reach about 3.5% by the end of 2023. As demand and supply in product and labor markets continue to be better aligned, inflation is expected to continue to decline over the next few years.
In addition, participants agreed that additional policy tightening would be considered as appropriate to achieve the goal of reducing inflation to 2 percent, but they would also weigh the longer-term economic and financial implications of continued monetary tightening. (Liu Xu, CCTV reporter)