Fed Meeting Minutes: If Inflation Drops as Expected, Further Rate Cuts More Likely

Odaily News According to the Fed meeting minutes, several participants believed that if inflation declines as they expect, further rate cuts would be more likely. However, most indicated that progress on inflation might be slower than generally forecast. At the January meeting, the FOMC voted 10-2 to maintain the benchmark federal funds rate target range at 3.5%-3.75%. Waller and Mester dissented, favoring a 25 basis point rate cut. Committee members removed language present in the previous three statements about increased downside risks to employment. Data released since the Fed's January meeting shows accelerating economic growth, slowing inflation, and a stabilizing labor market. According to the Bureau of Labor Statistics, the Consumer Price Index rose modestly in January, influenced by falling energy costs. The year-over-year increase in core CPI (excluding food and energy) was in line with expectations. (Jin10)