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Two factors came into play: that change would not mean much, as the Fed would remain well below its long-term rate target and it would not make sense to wait. that the rate of funds has been further increased. .
Committee members agreed that this would suggest a "false sense of precision" of where the rate might fall.
Many Fed observers made this decision to signal that the committee was nearing the end of its rate hikes, but this interpretation soon proved disappointing. The minutes stated that "accommodative" did not "provide significant information given the uncertainty surrounding the neutral interest rate level".
This decision is in line with recent comments by several Fed officials, who seem to be moving away from targeting a long-term "neutral" rate that is neither restrictive nor accommodating, leaving economic and financial data rather unclear. financial conditions as a guide.
Indeed, the report notes that future policy changes "will depend on the evaluation of the information received and its implications for the economic outlook.
"In this context, estimates of the level of the neutral federal funds rate would be just one of many factors that the Committee would take into account in making policy decisions."
Some members even suggested that the Fed organize periodic reviews of its policy formulation.
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