Fed officials saw strong economy facing inflation risks ahead of May rate hike

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Federal Reserve officials saw the economy holding strong despite high inflation and rising threats to the global economic outlook before hiking interest rates earlier this month, according to minutes released by the central bank Wednesday.

During the May 3-4 meeting of the Fed’s Federal Open Markets Committee (FOMC), the Fed panel responsible for setting interest rates and other monetary policy tools, officials voiced confidence in the resilience of the U.S. economy as the central bank ramps up its battle against inflation. Even so, Fed officials also saw several risks to the U.S. economy and the bank’s bid to bring inflation down without causing a recession looming on the horizon, according to minutes from the meeting.

“Members agreed that, although overall economic activity had edged down in the first quarter, household spending and business fixed investment had remained strong. Job gains had been robust in recent months, and the…

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