Fed Meeting Minutes: Hope to See Further Progress on Inflation Before Rate Cut

BlockBeats News, February 20th, the Federal Reserve meeting minutes showed that the Fed wants to see "further progress on the inflation front" before deciding on another rate cut. Citing rising inflation pressures, the Fed kept rates steady in the 4.25%-4.5% range at the last meeting, and the market does not expect a rate cut at the March meeting either. According to the minutes, the committee unanimously believed that "the Fed has sufficient time to assess economic activity, the labor market, and the evolving outlook for inflation." Many economists and market strategists are concerned that tariffs and stricter immigration policies could increase inflationary pressures, potentially offsetting the positive effects of tax cuts and regulatory easing. The Fed has previously indicated that it is not in a hurry to further cut rates due to persistently high inflation. While inflation has eased from its post-pandemic highs, it remains stubbornly above the Fed's desired level. For example, the Consumer Price Index in January grew by 3% year-on-year, the fastest pace in seven months and above the Fed's 2% target. (FXStreet)