Posted 2/21/2024, 8:59:00 PM
Fed Officials Cautious About Premature Rate Cuts Despite Peak Rates, Seeking More Evidence of Falling Inflation
- Fed officials raised concerns about cutting rates too soon at January meeting, worrying it could stall progress on inflation
- Minutes show officials believe rates are at peak but not ready yet to start reducing them
- Fed wants greater confidence inflation moving "sustainably" to 2% target before rate cuts
- Officials noted risks of easing policy stance too quickly before inflation clearly moving down
- Minutes highlighted uncertainty over how long restrictive policy would need to be maintained