All Fed policymakers supported the 25-basis-point hike to interest rates last month, but several considered a pause before agreeing to tighten monetary policy, according to minutes from the meeting. But the minutes also revealed officials “concurred the recent data on inflation provided few signs that inflation pressures were abating at a pace sufficient to return inflation to 2% over time... Participants observed that inflation remained much too high and that the labor market remained too tight; as a result, they anticipated that some additional policy firming may be appropriate.”
Short-term interest rate futures reflected slightly lower odds of another 25-basis-point hike to rates in May following the release of the minutes, though they still signaled additional monetary tightening is likely.
