Federal Reserve minutes: Policymakers saw a longer path to rate cuts

FILE - Federal Reserve Board Chair Jerome Powell speaks at a news conference at the Federal Reserve in Washington, May 1, 2024. On Wednesday, May 22, 2024, the Federal Reserve releases minutes from its most recent policy meeting. –

Such concerns have raised speculation that the Fed could consider raising, rather than cutting, its benchmark rate in the coming months. Indeed, the minutes noted that “various" officials “mentioned a willingness” to raise rates if inflation accelerated. Powell also said then that he still expected inflation to further cool this year. But, he added, “my confidence in that is lower than it was because of the data we’ve seen.”

Excluding volatile food and energy costs, prices rose at a 4.4% annual rate in the first three months of this year, according to the Fed’s measure, sharply higher than the 1.6% pace in December. That acceleration dimmed hopes that the Fed would soon be able to cut its key rate and achieve a “soft landing,” in which inflation would fall to 2% and a recession would be avoided.

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