Federal Reserve says more rate hikes needed

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.

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%.

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