Fed minutes: sharp rate cuts not a sign of economic concern or rapid rate cuts

Officials agreed that the larger rate cuts adopted at the meeting should not be seen as a sign of concern about the economic outlook or as a signal that the Fed was prepared to cut rates quickly. Officials who commented on the extent to which monetary policy was restrictive agreed that it was restrictive, although they held a range of different views on the degree of restrictiveness. Participants also emphasised the importance of communication. The importance of communication was to convey clearly that the Committee's monetary policy decisions depended on the evolution of the economy and its impact on the economic outlook and the balance of risks, and that it was therefore not a predetermined course. In addition, some participants indicated that the process of tapering by the Federal Reserve could continue for some time, even if the Committee lowered its target range for the federal funds rate.