From CNBC: 2024-07-03 14:31:09

Federal Reserve officials at June meeting discussed inflation, concluding it’s moving towards 2% target but not quickly enough to lower rates. Minutes show disagreement among central bankers, with some even leaning towards raising rates if necessary. Update on economic projections and monetary policy, with hesitant stance on rate cuts.

Committee members emphasize need for more evidence before reducing federal funds rate target range. “Dot plot” shows one quarter percentage point cut by end of 2024, down from previous projections. Futures markets predict two cuts starting in September. Econ projections remain largely unchanged, with lowered expectations for inflation this year.

Discussions in minutes reveal differing views on tightening policy if inflation persists or responding to economic weakness. No specific officials named in minutes, but “a number” indicates more than “several.” Majority sees economic growth cooling, current policy considered restrictive. Officials signal cautious approach, data dependence for rate decisions.

Chair Jerome Powell suggests risks of cutting rates too soon versus too late have balanced out. Previous emphasis on not giving up inflation fight prematurely shifts towards cautious optimism. Officials stress importance of encouraging inflation readings for potential rate cuts. Meeting concludes with rates held steady, awaiting further data.

Read more: FOMC not ready to cut rates until ‘greater confidence’ inflation is moving to 2% goal