Fed meeting minutes reflect cautious stance on interest rate cuts amid falling inflation
(MENAFN) Minutes from the Federal Reserve's meeting on June 11-12, released on Wednesday, revealed that Fed officials acknowledged the U.S. economy's slowdown and noted that "price pressures were easing." Despite these observations, the officials recommended a cautious, wait-and-see approach before deciding to cut interest rates. The minutes highlighted weak consumer price index data from May as one of several indicators from the product and labor markets suggesting that inflation was easing.
However, the officials did not believe it was appropriate to lower the target range for the federal funds rate until additional information provided greater confidence that inflation was moving sustainably towards the 2 percent target. The meeting minutes emphasized that, with only modest improvement observed so far, there was no justification for lowering rates despite signs of slowing economic growth and easing price pressures. The Federal Reserve aims for an annual inflation rate of 2 percent, a level that has been consistently exceeded since early 2021.
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