The minutes of the last meeting of the Federal Open Market Committee (FOMC), which ended on November 1, expressed the concern of the US Federal Reserve System about the possible acceleration of inflation due to the strong growth of the American economy. At the last meeting of the Federal Reserve, the interest rate on federal loan funds was maintained at the level of 5.25-5.5% per annum, which is the highest in the last 22 years. The protocol notes that most participants see increased risks for inflation, including the possibility of slowing down the disinflationary process or re-accelerating inflation due to a high level of economic activity. In case of insufficient progress in reducing inflation, Fed officials are ready for additional rate increases. FOMC members supported the need for a cautious monetary policy, which should remain restrictive until inflation begins to slow down. The Fed's leaders also point to risks to economic growth, including tightening credit conditions, problems in the commercial real estate market and in foreign markets. Some participants noticed that high interest rates began to negatively affect business, leading to a reduction or postponement of investment plans. The next Fed meeting is scheduled for December 12-13, and market participants are almost confident that the rate will remain at the same level, with the possibility of its reduction next spring.
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