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Fed determined to curb inflation, several more half-point hikes ‘probably appropriate’

Managers want “quickly return monetary policy to a neutral path”.

US central bank officials have said they are determined to bring inflation down sharply, and most of them estimated at their last meeting in early May that several more half-point rate hikes will be “probably necessary”.

Half-point increases, faster than the usual quarter-points, will be “probably appropriate at future meetings”, according to excerpts from the meeting in early May, published on Wednesday. These leaders want “quickly return monetary policy to a neutral path”which does not stimulate or slow down the economy, or even if necessary, adopt a more severe policy, which could weigh on growth.

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