According to minutes from the two-day meeting held on June 11 and 12, Federal Reserve officials acknowledged at their latest meeting that price pressures are easing.
Federal Reserve officials, according to the minutes of the two-day meeting held on June 11 and 12, said that The US economy appears to be slowing down and? “Price pressures are easing”but advised waiting before committing to cutting interest rates, as had been recommended earlier the head of the entity, Jerome Powell.
In the conclusions they supported the view that inflation is slowing. Even so, “They did not expect it to be appropriate to lower the target range for the federal funds rate. until there is more information that gives greater confidence that inflation is moving sustainably towards the 2% target.
“The vast majority of participants felt that economic activity growth appeared to be gradually cooling down, and most participants indicated that they consider the current stance of monetary policy to be restrictive” and therefore likely to further slow the economy and inflation.
By voting to keep the official rate between 5.25% and 5.5%, where it remained for a year, “participants indicated that Progress in reducing inflation had been slower this year than expected last December“, according to the minutes, and “some participants” insisted on the need to be patient before reducing rateswhile “several” mentioned the possible need to raise them further if inflation resurfaced.
The inflation data analyzed by the Fed
Data released on June 12 showed that The CPI did not rise in May in inter-monthly termsan encouraging piece of data that came late to the Fed’s monetary policy deliberations.
In addition to keeping rates stable, monetary authorities delayed the expected start of rate cuts at the June meeting, with new projections showing that Fed policymakers are anticipating only a quarter-point cut this year, down from three percentage points expected at their March 19-20 meeting.
The next Fed meeting will be held on July 30-31and the reference rate is expected to remain stable.
By then, policymakers will have received updated information on the labor market with the release of the June employment report on Friday, the June CPI report on July 11 and an initial estimate of second-quarter economic growth on July 25.
Source: Ambito
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