Federal Reserve headquarters
US Federal Reserve members ruled out, during their two-day meeting that ended on Jan. 31, lowering the target range for the federal funds rate until they were certain that inflation was moving sustainably toward 2%.
The minutes of the central bank meeting issued, on Feb. 21, stressed the pursuit of full employment, coinciding with the inflation rate reaching 2% in the long term. The minutes further indicated that in light of the uncertainty about the economic outlook, the committee will remain “very attentive” to inflation risks.
Regarding future decisions, the central bank emphasized a cautious and data-based approach in dealing with monetary policy, noting that the top priority remains ensuring economic stability and a gradual return to the inflation target set by the Fed.
During the January meeting, members of the Federal Open Market Committee (FOMC) unanimously agreed to fix the interest rate at a range between 5.25% and 5.50% for the fourth time in a row since July 2023.
During an annual regulatory meeting held in January each year, the FOMC unanimously reaffirmed the “long-term objectives and monetary policy strategy” and explained that downside risks to employment and inflation increased.
Policymakers are scheduled to meet on March 19 and 20, in light of expectations of stabilizing the interest rate, as Federal Reserve Chair Jerome Powell ruled out reducing the interest rate in his statement following the meeting.
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