Minutes from the November 6-7 meeting revealed that Federal Reserve officials expressed optimism about inflation easing and the strength of the labor market, which supports the potential for further interest rate cuts, although at a cautious pace.
Fed to adopt gradual rate cuts
They emphasized that monetary policy decisions depend on ongoing economic trends and warned against making hasty rate reductions. The recent volatility in data and uncertainty surrounding the neutral interest rate’s effect on the economy made policymaking particularly difficult.
Mixed views
Some officials suggested maintaining restrictive rates if inflation remained high, while others called for quicker cuts if the labor market weakened. The meeting did not address the economic impact of Donald Trump’s recent presidential election victory but highlighted the need for flexibility.
