- Majority sees downside risks too fast
- Some Fed members see that inflation progression could stall
- The Fed will at some point decide the future fate of balance sheet reduction
Most policymakers at the recent meeting of the US Federal Reserve expressed concerns about the potential dangers associated with early interest rate cuts. There was a general lack of clarity on the optimal length of time to keep borrowing costs at current levels, as noted in the minutes of the January 30-31 meeting.
Policymakers "generally" agreed that they needed "more confidence" that inflation would fall before considering rate cuts. Some Fed members believe inflation trends could stagnate. Bankers will decide at some point the future fate of balance sheet reduction.
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The US100 index shows slight declines following the release of the minutes of the last FOMC meeting.
