More Federal Reserve officials are concerned about cutting interest rates too quickly than are worried about going too slowly, according to minutes of the Fed’s late January policy meeting, released Wednesday. “Most” officials noted the risks of moving too quickly to cut rates and wanted to carefully assess the data for more progress on inflation, the minutes said.
“A couple” of officials pointed out that there were downside risks to the economy of holding “an overly restrictive stance for too long.” The tone of the minutes was one of caution toward inflation, even though there had been progress over the previous six months. “Some participants noted the risks that progress toward price stability could stall,” the minutes said. Officials said that there was uncertainty over how long a restrictive policy stance needed to be maintained. At the Jan. 30-31 meeting, the Fed decided to keep its benchmark interest rate in a range of 5.25% to 5.5%. The voting Fed members said they did not expect it would be appropriate to cut the target rate until they had “gained greater confidence that inflation is moving sustainably toward 2%.” Fed Chair Jerome Powell effectively took a March rate cut off the ta …
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“A couple” of officials pointed out that there were downside risks to the economy of holding “an overly restrictive stance for too long.” The tone of the minutes was one of caution toward inflation, even though there had been progress over the previous six months. “Some participants noted the risks that progress toward price stability could stall,” the minutes said. Officials said that there was uncertainty over how long a restrictive policy stance needed to be maintained. At the Jan. 30-31 meeting, the Fed decided to keep its benchmark interest rate in a range of 5.25% to 5.5%. The voting Fed members said they did not expect it would be appropriate to cut the target rate until they had “gained greater confidence that inflation is moving sustainably toward 2%.” Fed Chair Jerome Powell effectively took a March rate cut off the ta …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]