TUCSON, Ariz. (13 News) – Members of the Federal Reserve said inflation is showing signs of easing, but more interest rate increases will be necessary to make sure that continues.
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The Treasury Department will start enacting extraordinary measures to postpone a default, as Congress works to find a solution.
The Federal Reserve released the minutes from its January 31- February 1 meeting, which ended with a rate hike of a quarter of a percent.
The minutes stated inflation is still well above the Fed’s target rate of 2% and a strong labor market continues to push wages and prices higher.
The most recent consumer price index was up 6.4% from the same time last year.
The minutes showed some Federal Reserve members supported a more aggressive increase of a half of a percent.
Regional President James Bullard of St. Louis has said he believes making more aggressive interest rate hikes would be more effective.
Bullard said interest rates should be around 5.375%, which is closer to current market pricing.
The fed funds rate is currently 4.5%-4.75%.