Fed Board, Report: Minutes of the FOMC May 2-3, 2023

“Participants agreed that it would be important to closely monitor incoming information and assess the implications for monetary policy. In deter-mining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, various participants noted specific factors that should bear on future decisions on policy actions. One such factor was the degree and timing with which cumulative policy tightening restrained economic activity and reduced inflation, with some participants commenting that they saw evidence that the past years’ tightening was beginning to have its intended effect. Another factor was the degree to which tighter credit conditions for households and businesses resulting from events in the banking sector would weigh on ac-tivity and reduce inflation, which participants agreed was very uncertain … “