From CNBC: 2024-04-10 14:42:01

Federal Reserve officials expressed concern about inflation not decreasing quickly enough at their March meeting. While they expected to cut interest rates this year, policymakers felt uncertain about inflation persisting above target. Rising energy prices and geopolitical turmoil were cited as risks. Officials also discussed a possible end to the balance sheet reduction process.

After the Consumer Price Index showed a 3.5% increase in March, above market expectations, traders revised rate cut expectations. The Fed may implement a less restrictive policy this year based on economic evolution. Market economists expect the balance sheet reduction process to be eased soon, following a half reduction in the roll-off pace.

At the meeting, policymakers discussed the need to gain greater confidence in inflation reaching their 2% target for rate cuts. Despite diverse views on inflation data, the Fed emphasizes a cautious approach to policy adjustments. Chair Jerome Powell expressed concerns over the recent inflation increases and argued for potential seasonal issues in the readings.

Read more: Fed wants more confidence that inflation is moving toward 2% target, meeting minutes indicate