Fed expects higher interest rates for some time, minutes show

By Ovunc Kutlu

ANKARA (AA) - US Federal Reserve officials expect higher interest rates to remain for some time, according to the minutes of the Fed’s meeting released Wednesday.

The Federal Open Market Committee (FOMC) indicated that inflation remains "unacceptably high" and well above the Fed’s longer-run goal of 2%, the minutes said from the Sept. 20 - 21 meeting.

The Fed increased its benchmark interest rate 75 basis points in the meeting for the third time in a row to tame record inflation that is still hovering above 8%.

FOMC members noted that inflation is "showing little sign so far of abating," and added that "supply and demand imbalances in the economy continuing.”

The members also hinted that the Fed would continue its monetary tightening to lower inflation.

"Several participants noted that, particularly in the current highly uncertain global economic and financial environment, it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook," said the minutes.