Fed signals more aggressive steps to fight inflation

WASHINGTON (AP) — Federal Reserve officials are signaling that they will take a more aggressive approach to fighting high inflation in the coming months — actions that will make borrowing sharply more expensive for consumers and businesses and heighten risks to the economy. In minutes from their policy meeting three weeks ago, Fed officials said that aggressive half-point rate hikes, rather than traditional quarter-point increases — “could be appropriate” multiple times this year. At last month’s (March 2022) meeting, many of the Fed policymakers favored a half-point increase but held off because of the uncertainties created by Russia’s invasion of Ukraine. Instead, the Fed raised its short-term rate by a quarter-point and signaled that it planned to continue raising rates well into next year.