Federal Reserve officials have generally agreed that they may not need to cut interest rates again unless economic conditions change significantly, according to minutes published Wednesday from their last meeting.
Central bankers at the end of October reduced their overnight reference credit score by a quarter to a range of 1.5% -1.75%, the third such move in 2019.
"Members of the Federal Open Market Committee believe the moves are sufficient" to support the prospect of moderate growth, a strong labor market and inflation near the Committee's 2 percent symmetric target, "said the summary of the meeting.
The policy stance "will probably remain" where it is "is enough input State information economy does not lead to a substantial reassessment of the economic outlook. "
However, they argue that the policy is not in a predetermined course, even if it is likely to remain in detention, and members will continue to evaluate changes in the data and T he overall outlook. Members often note that policy adjustments to The Fed is working on a delay that may take a year or more, so they intend to monitor how the transition to a simpler policy will affect financial conditions.The cuts began in July, just seven months after the commission approved the fourth increase in pr cents for 201
These sentiments are largely in line with the latest public statements by Fed officials.
President Jerome Powell, in congressional testimony last week, said he also felt comfortable with the policy position. it also includes the low likelihood of a percentage increase: After the October 29-30 meeting at the FOMC, he also said he did not expect any increases unless there was a significant increase in inflation.
Insufficient Risks to the Economy  Discussions at the meeting indicated that members felt that the US economy was in a very strong position, with a robust labor market and a strong appetite for spending among consumers, whose activity represented about 70% of GDP .
However, they also see "the downside risks to the economic outlook as high, further highlighting the case of interest cuts" at the October meeting. They cite reduced business investment and exports as a result of "weakness in global growth and increased uncertainty over
They noted that concerns about the two issues seemed to be "somewhat alleviated."
The United States and China were locked in a two-year trade battle that saw the two countries equalize a hundred. The recent headlines indicate some thawing, though CNBC announced earlier this week that Beijing remains pessimistic that the deal will be made.
FOMC members voting in support of the tariff cut, They also outlined the benefits that lower rates would provide as an insurance policy against troubles ahead, and also continued to raise concerns about inflation, which consistently goes below 2% of the Fed's target. All but two members of the committee voted in favor of the dismissal, disagreeing with the view that no further accommodation was needed.
USA. economic activity is likely to have subsided significantly in the fourth quarter. New York and Atlanta Fed's tracking GDPs hit Q4 gains of less than half a percent, though CNBC's update rate sees the figure at around 1.5%.
The Federal Open Market Committee on Wednesday released the minutes of its October 29 -30 meeting. The Committee voted to reduce the base rate by a quarter point to 1.5% -1.75%.