Fed in March Saw Bigger Rate Bump Coming

Federal Reserve policymakers voted unanimously to nudge U.S. interest rates up moderately in March, but some foresaw the need for more aggressive moves in the near future, just-released minutes of their meeting showed. Citing the risk of unsettling already jittery financial markets and the absence of clear signs of higher inflation, members of the rate-setting Federal Open Market Committee opted to raise the key federal funds overnight bank lending rate by a quarter-point to 6% at their March 21 meeting. “Some members commented that, although a more forceful policy move of 50 basis points might be needed at some point, measured and predictable policy tightening moves . . . still were desirable,” the minutes said. The FOMC met again this week, bumping up the fed funds rate by half a point to 6.5%, the largest single rate rise in five years aimed at cooling the red-hot U.S. economy.