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Federal officials: Doing too little to fight inflation worse than doing too much

U.S. policymakers say a more restrictive policy stance is favored
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Posted at 7:56 PM, Oct 12, 2022
and last updated 2022-10-12 21:56:56-04

Policymakers at the U.S. Federal Reserve are doubling down on their stance that strict measures are needed to curb red-hot inflation across the country on just about every consumer product.

Officials say they've come to a consensus, urging the public to side with them on their position that doing too much to stop rising and persistent inflation is better than doing too little.

The Federal Reserve had strongly signaled that they expect to continue moving to take a more restrictive policy stance, as Reuters reported.

A sentiment publicly echoed by Fed chair Jerome Powell is that the American consumer can expect the central bank to maintain its tough policy stance for some time.

A copy of minutes from the Fed's two-day meeting last month, released Wednesday, shows the plan is part of the Fed's tunneled focus on its top priority: lowering inflation.

Fed vice chair Lael Brainard said in a Monday speech that “policy actions to date will have their full effect on activity in coming quarters,” CNN Business reported.

Meaning the pain of rising interest rates now is not expected to tame inflation in the very near future.

The Federal Reserve's next meeting is scheduled for Nov. 2, and investors expect the fourth consecutive three-quarters of a percentage point hike to be revealed.