The market was shown by the release of the minutes of the Federal Reserve (Fed) policy meeting for the first meeting of the central bank for the year earlier this morning.
The following are important notes taken from the minutes:
Some policymakers chose to raise rates by 50 basis points.
But, finally everyone agreed to raise 25 basis points.
All policymakers agree more rate hikes are needed to achieve the FOMC's mandate, the inflation objective.
Tight monetary policy is needed until the Fed is confident inflation has fallen to its 2% target, and this process takes time.
Uncertainty in the economic outlook, job market and inflation is high.
The job market is 'very tight', the demand for labor exceeds the available workforce.
Continued employment issues will contribute upward pressure to inflation.
Policymakers see risks to rising inflation, including the reopening of China's economy and Russia's war in Ukraine.
Risks to the economic outlook are weighted to the downside.
Inflation in the last three months has eased, but policymakers need more progress.
Some policy makers see the prospect of a recession high in 2023.
As a result of the minutes of this meeting, it can be seen that the Fed still wants to raise interest rates to ensure that inflation really comes down to the central bank's target of 2%.
This turned out to miss market expectations that the central bank would stop raising rates in the middle of this year.
Impact on currencies, the US dollar rose again to trade stronger than major currencies in the Asian session.
