The Fed raised policy rate levels by a quarter point at its mid-March meeting, and the U.S. economy has achieved sufficient levels of unemployment and inflation to encourage further
gradual policy tightening this year and into next.
In those minutes, the Fed gave a nod to the improving economy and said it could be that «
further gradual policy firming would be appropriate.»
Concerns over rising interest rates also factored into the equation after the Federal Reserve gave no indication on Wednesday that it would abandon its approach
of gradual policy normalization.
Third, with other central banks — most importantly, the European Central Bank — signaling an end to extreme monetary accommodation and
gradual policy normalization, interest rate differentials continue to collapse.
The Federal Reserve, long hesitant to raise U.S. interest rates, increasingly faces risks if it waits too much longer so
a gradual policy tightening is likely appropriate, a top Fed official said on Friday.