Fed Minutes: Almost all officials backed quarter-point hike

Nearly all Federal Reserve policymakers agreed earlier this month to slow the pace of the Fed’s rate increases to a quarter-point, with only “a few” supporting a larger half-point hike. The minutes from the Fed’s Jan. 31-Feb.1 meeting said that most of the officials supported the quarter-point hike because a slower pace “would better allow them to assess the economy’s progress” toward reducing inflation to their 2% target. The increase raised the Fed’s benchmark rate to a range of 4.5% to 4.75%, the highest in 15 years. The central bank’s rate hikes typically lead to increases in the costs of mortgages, auto loans, credit card borrowing, and business lending.