Fed Is In No Hurry To Cut Rates, Meeting Minutes Confirm | Global News Avenue

Behind the scenes, Fed officials said the same thing they said in public: Central banks are not in a hurry to cut borrowing fees.

The minutes released by the Fed’s policy meeting on Wednesday showed that policy makers are not in a hurry to lower the central bank’s key interest rates, i.e. Their comments made in public since.

“Most participants observed that the current high uncertainty made the committee suitable for careful adoption of a prudent approach to further adjustments to their monetary policy stance,” the minutes noted.

Inflation and uncertainty over President Donald Trump’s economic policies are higher than expected “Waiting to Observe” mode After three innings were cut late last year.

“The minutes of the FAP meeting in January show that in view of the increasing uncertainty around it trading and migrant “Policy is the safest place for central banks,” Ryan Sweet, chief economist at Oxford Economics, wrote in a comment.

In September, the central bank cuts Federal funding ratewhich affects the borrowing costs of various loans. Fed officials lowered key interest rates from their two decades highs and took them again in two subsequent meetings.

The Fed’s goal is to keep pace high enough to slow the economy and squeeze inflation, but not as high as unemployment. Inflation soared after the pandemic, Still running above The Fed’s 2% annual rate targets the labor market Stay resilient.