By Ovunc Kutlu
ISTANBUL (AA) - US Federal Reserve members expect interest rates to remain high for some time until inflation softens, according to minutes of a central bank's meeting released Wednesday.
"All participants agreed that policy should remain restrictive for some time until the Committee is confident that inflation is moving down sustainably toward its objective," the minutes said from the Fed's latest meeting Sept. 19 - 20.
"Several participants commented that, with the policy rate likely at or near its peak, the focus of monetary policy decisions and communications should shift from how high to raise the policy rate to how long to hold the policy rate at restrictive levels," it added.
The Fed skipped a rate increase Sept. 20 for the second time this year, keeping the federal funds rate unchanged between the 5.25% - 5.5% target range -- still the highest level in 22 years.
Since March 2021, the central bank made 11 rate hikes to fight record inflation that climbed last summer to its highest in more than four decades.
Most Fed officials, meanwhile, support at least one interest rate increase in one of the two remaining meetings this year.
"A majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted," said the minutes.
The probability of a rate hike of 25 basis points at the bank's next two-day meeting that will conclude Nov. 1 stood at just 8.5%, according to the FedWatch Tool provided by the US-based Chicago Mercantile Exchange Group late Wednesday.