In January, Federal Reserve officials expressed their readiness to stabilize interest rates amidst stubborn inflation and uncertainty in economic policy.
“Participants indicated that if the economy remains close to maximum employment, they would like to see further progress in inflation before making additional adjustments to the target range of federal funding rates,” he said.
“Many participants noted that the economy is strong and that if inflation rises, the committee can maintain policy rates at a restricted level,” according to minutes released in Washington on Wednesday.
The authorities held the Fed’s benchmark policy rate in the range of 4.25% to 4.5% at the gathering.
The conference’s records highlighted the careful approach that Fed policymakers take after a percentage of interest rates at the end of 2024. Some officials say they want to see inflation cooler towards the Fed’s 2% target before supporting another target. cut.
Investors are currently pricing for one fee reduction that could be one second in 2025, according to Futures Markets.
Some officials have expressed concern about the risks posed by the possibility of another debt cap showdown in Washington.
“As for possible significant reserve fluctuations over the coming months related to debt cap dynamics, various participants will consider suspending or slowing out balance sheet outflows until resolution of this event. I pointed out that it was appropriate,” the minutes said.
