According to minutes from the Federal Reserve’s last policy meeting of 2023, officials agreed that interest rates had likely reached their peak. Almost all of them predicted that lower rates “would be appropriate by the end of 2024.” The central bank released these minutes on Wednesday.
However, there was no discussion about the exact timing of these rate cuts. Participants kept the option of raising rates on the table if inflation were to increase again.
There was also some disagreement about the future trajectory of rates. Some suggested that rates could remain at this peak level for a longer period than initially anticipated. Additionally, several participants warned about the risks to the economy of maintaining restrictive policies for too long.
One area of agreement among Federal Open Market Committee officials was that the central bank had made progress in cooling inflation. They cited a six-month reading of ”core” inflation and observed signs of improved demand and supply.
2024-01-03 15:06:21
Article from finance.yahoo.com
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