Federal Reserve officials saw that slowing inflation could support a peak in the federal-funds rate this year and emphasized their dependence on the incoming economic data, minutes from their last policy meeting show.
The Federal Open Market Committee, or FOMC, opted to raise its benchmark interest rate by 0.25 percentage point, to a target range of 4.50% to 4.75%, at its most recent Jan. 31-Feb. 1 meeting. The move followed six consecutive larger increases of 0.50 or 0.75 percentage point. Markets rallied after the meeting, as traders predicted a coming end to the Fed’s tightening campaign.