Fed Officials Want Further Progress On Inflation Before Cutting Rates

RTTNews | 90 ngày trước
Fed Officials Want Further Progress On Inflation Before Cutting Rates

(RTTNews) - Provided the U.S. economy remains near maximum employment, the minutes of the Federal Reserve's latest monetary policy meeting revealed officials want to see further progress on inflation before they consider resuming lowering interest rates.

The minutes of the Fed's January 28-29 meeting also reiterated officials believe a "careful approach" in considering additional adjustments to the stance of monetary policy remains appropriate given the high degree of uncertainty.

Factors mentioned by participants as supporting a "careful approach" included the reduced downside risks to the outlook for the labor market and economic activity and increased upside risks to the outlook for inflation, the Fed said.

While many participants noted the Fed could keep rates at a restrictive level if the economy remained strong and inflation remained elevated, several remarked that policy could be eased if labor market conditions deteriorated, economic activity faltered or inflation returned to 2 percent more quickly than anticipated.

The minutes also said participants observed that the Fed was well positioned to take time to assess the evolving outlook for economic activity, the labor market, and inflation, with the vast majority pointing to a still-restrictive policy stance.

Following the late-January meeting, the Fed announced its widely expected decision to leave interest rates unchanged after cutting interest rates for three straight meetings.

The Fed said it decided to maintain the target range for the federal funds rate at 4.25 to 4.50 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.

The minutes said participants noted inflation remained somewhat elevated while also observing that recent indicators suggested economic activity had continued to expand at a solid pace, the unemployment rate had stabilized at a low level, and labor market conditions had remained solid in recent months.

The central bank's next monetary policy meeting is scheduled for March 18-19, when Fed officials will also provide their latest projections for rates, inflation and the economy.

CME Group's FedWatch Tool is currently indicating 97.5 percent chance the Fed will once again leave rates unchanged.

read more
U.S. Leading Economic Index Slumps More Than Expected In April

U.S. Leading Economic Index Slumps More Than Expected In April

The Conference Board released a report on Monday showing its reading on leading U.S. economic indicators slumped by more than expected in the month of April. The report said the leading economic index tumbled by 1.0 percent in April after sliding by a downwardly revised 0.8 percent in March.
RTTNews | 1 ngày trước
U.S. Consumer Sentiment Unexpectedly Continues To Deteriorate In May

U.S. Consumer Sentiment Unexpectedly Continues To Deteriorate In May

Consumer sentiment in the U.S. has unexpectedly continued to deteriorate in the month of May, according to preliminary data released by the University of Michigan on Friday. The University of Michigan said its consumer sentiment index dipped to 50.8 in May after slumping to 52.2 in April. Economists had expected the index to inch up to 53.4.
RTTNews | 4 ngày trước
U.S. Import, Export Prices Unexpectedly Inch Higher In April

U.S. Import, Export Prices Unexpectedly Inch Higher In April

The Labor Department released a report on Friday unexpectedly showing modest increases by both U.S. import and export prices in the month of April. The report said import prices crept up by 0.1 percent in April after falling by a downwardly revised 0.4 percent in March.
RTTNews | 4 ngày trước
U.S. Business Inventories Inch Up Slightly Less Than Expected In March

U.S. Business Inventories Inch Up Slightly Less Than Expected In March

The Commerce Department released a report on Thursday showing a slight increase by U.S. business inventories in the month of March. The report said business inventories crept up by 0.1 percent in March after rising by 0.2 percent in February. Economists had expected business inventories to rise by another 0.2 percent.
RTTNews | 5 ngày trước
U.S. Homebuilder Confidence Unexpectedly Slumps In May

U.S. Homebuilder Confidence Unexpectedly Slumps In May

Reflecting growing uncertainties stemming from elevated interest rates, tariff concerns, building material cost uncertainty and the cloudy economic outlook, the National Association of Home Builders released a report on Thursday showing an unexpected slump by U.S. homebuilder confidence in the month of May.
RTTNews | 5 ngày trước