Fed Cautious About Cutting Rates Too Soon as Inflation Progress Could Stall: Minutes

Federal Reserve officials do not believe it is appropriate to reduce interest rates until there is greater confidence inflation is heading toward the central bank’s target, as some policymakers warned progress on inflation could stall. According to minutes from the January Federal Open Market Committee (FOMC) policy meeting, officials want to wait for more numbers before cutting the benchmark Fed funds rate. However, they dismissed the possibility of raising rates, noting that the policy rate has likely peaked in the current cycle. Meeting participants conceded that there is uncertainty surrounding the length of time the policy will remain in the restrictive territory. Officials say the timing of rate cuts depends on inflation, which could take longer to defeat than originally expected....