nvesting.com – Fed members continued to support gradual rate cuts should economic data come in as expected, but some members floated the idea of a pause if inflation remains elevated, according to the minutes of the Federal Reserve’s Nov. 6-7 meeting, released Tuesday.
If the data came in about as expected, with “inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment, it would likely be appropriate to move gradually toward a more neutral stance of policy over time,” the minutes showed.
At the conclusion of its previous meeting on Sept. 18, the Federal Open Market Committee, or FOMC, reduce its benchmark rate by 25 basis points to a range of 4.5% to 4.75%.
Following the meeting, a slew of positive economic data including a hotter-than-expected September inflation report and an upbeat October retail sales report.
The recent signs of economic strength as well as worries that a second Donald Trump administration could fuel inflation have muddied investor expectations for Fed rate cuts.
Recent Fed speak has also played a role in uncertainty about the rate cut ahead, with some members backing a more cautious approach to rate cuts.
Fed chairman Jerome Powell signal that economy isn’t signalling a need for speed on rate cuts as the recent strength allows the Fed to take a careful approach to monetary policy decisions.
The odds of a December rate stood at 64%, according to Investing.com’s Fed Rate Monitor Tool.
