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Federal Reserve April Meeting Minutes: The path to lower inflation is getting longer and longer

Federal Reserve April Meeting Minutes: The path to lower inflation is getting longer and longer

Bitget2024/05/23 01:15
BTC+0.01%

ChainCatcher news, at 2 a.m. Singapore time on Thursday, the Federal Reserve released the minutes of its policy meeting from April 30 to May 1. As expected by the market, Fed officials emphasized that due to disappointing inflation data, the duration for which policy rates need to be maintained at current levels would be longer than previously anticipated.

In the resolution announced on May 1st, The Federal Open Market Committee (FOMC) kept benchmark interest rates unchanged at between 5.25% and 5.50% for the sixth consecutive time. It also announced that starting in June, it will reduce its Treasury holdings from $60 billion per month to $25 billion.

The minutes indicated that committee members believed there had been little progress towards achieving their target of a further fall back towards an inflation rate of 2%, compared with last year's continued slowdown in inflation over recent months. While some members tried to explain this through "an unusually large seasonal distortion causing January data to rise" or "some long-term volatile items pushing up inflation", others pointed out that "price increases are widespread and should not be overly ignored".

After extensive deliberation, they reached one of the most important conclusions in their report: any cut in interest rates might have to wait a bit longer. Participants noted they continue expecting inflation will return to around two percent over medium term; however recent data did not increase their confidence about falling back toward this level anytime soon. Therefore lowering process may take more time than previously expected . Some even said if risks emerge suggesting further increases in inflation , they'd consider tightening policy further . All officials agreed unanimously it wouldn't be appropriate cutting rates until greater confidence is seen regarding decline down toward two percent.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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