After the FED left interest rates unchanged at its last meeting, the minutes of the said meetings were published.
Here are the details from the minutes:
- Members believe that upside risks to inflation have receded.
- Some members see an increased risk of more serious disruption to the workforce.
- A “vast majority of members” believe a rate cut in September is likely to be appropriate.
- 'A few' members saw reasons for a rate cut at the July meeting.
- Downside risks to employment are seen as increased.
- Almost all members believe that the decline in inflation will continue.
- Nearly all authorities want more inflation data before cutting interest rates.
- Members believe the latest data strengthens their confidence that inflation is on track to reach the 2% target.
- Many participants said recent improvements in inflation and the rise in the unemployment rate provided a “reasonable basis” for a quarter-point cut at the July meeting, or that they would support such a move.
- All participants supported leaving the current policy rate range unchanged. Many participants noted that easing policy too late or too little could excessively weaken economic activity or employment.
- Members have observed that the Fed has recently made “further progress” in achieving its 2% inflation target.
- Fed officials lowered their forecast for economic growth in the second half of 2024, largely citing weaker-than-expected labor market conditions.
- Many officials said interest rates were at restrictive levels.
