Fed policymakers have seen little risk from patients: a few minutes



FILE PHOTO: A security guard walks in front of an image of the Federal Reserve following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, DC on March 16, 2016. REUTERS / Kevin / File Photo

(Reuters) – Federal Reserve policymakers have estimated that halting the rise in US interest rates last month poses little risk and a lot of benefits, the report said. the meeting on January 29 and 30, which gave them time to assess the effects of the global slowdown and Fed rate hikes so far on US economic momentum.

"Many participants suggested that it was not yet clear what adjustments to the target range for the federal funds rate might be appropriate later this year," according to the official minutes of the last Fed meeting on the monetary policy, published on Wednesday. "Many of these participants argued that rate hikes may only be needed if the inflation performance is better than their bottom line."

The US central bank surprised markets last month by suspending a three-year campaign to raise interest rates, saying it would be patient with any adjustment to its target range for rates of interest. short-term interest, currently between 2.25% and 2.5%. .

He also signaled that he could slow down or end his $ 4 trillion write-offs, a process she had previously described as an autopilot.

The surprisingly accommodating decision came as growth in the United States came up against growing difficulties, including the slowdown in the Chinese and European economies and the relaxation of stimulus measures stemming from the 2018 tax cuts in the United States.

The question of how long the Fed would remain "patient" in politics, and whether the next decision of the central bank would be to relax rather than tighten the policy would remain unanswered.

Since the Fed's promise of patience last January, many politicians have said the economy is doing well.

But doubts remain as US interest rate futures traders are increasingly betting on the fact that the Fed will have to soften its policy early next year to face a recession.

Reportage by Ann Saphir; Edited by Chizu Nomiyama

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