Fed Officials Split on Where Interest Rates Should Go, Minutes Say
Fed officials are split on whether to pause, resume cuts, or hike rates amid slow inflation progress and easing job market risks, with the policy rate held at 3.5%-3.75%.
- Federal Reserve officials showed deep divisions about the future path of interest rates at their January meeting, with some supporting rate cuts if inflation falls and others favoring holding rates steady to assess data.
- Several officials favored keeping the option of rate hikes open if inflation remains above target, reflecting a cautious stance.
- The Fed held rates steady last month, though two governors dissented, preferring lower rates due to concerns about the labor market.
- Officials noted labor market signs of stabilization but acknowledged risks of higher unemployment if labor demand falls further, while also having mixed views on inflation and tariff-related price effects.
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46 Articles
Fed minutes: Lower inflation needed before many officials will support rate cuts
Many Federal Reserve officials want to see inflation fall further before they would support additional interest rate cuts this year, particularly if the job market continues to stabilize, minutes of last month’s meeting show.
Fed minutes show division, and talk of rate hikes, beneath January pause
Federal Reserve officials were in near-unanimous agreement to keep interest rates on hold at their meeting last month, but remained split over what might happen next, with "several" policymakers raising the risk of possible hikes in borrowing costs if inflation remains elevated, and others split over if and when further cuts might be warranted, according to minutes of their January 27-28 meeting.
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