Fed minutes show some officials open to rate hike if inflation remains above target

Fed minutes show some officials open to rate hike if inflation stays elevated

Minutes of the Federal Reserve’s January policy meeting showed the US economy continued to expand at a solid pace, with labor market conditions stabilizing, though inflation remained somewhat elevated.

The minutes, released on Wednesday, said economic growth in 2025 continued but at a slightly slower pace than the previous year. Policymakers noted signs of stability in the labor market, and most participants said risks to employment had receded in recent months.

At the same time, officials said uncertainty around the economic outlook remained high, citing changes in government policy, geopolitical developments, and the potential effects of artificial intelligence.

Some policymakers said they would support raising interest rates if inflation stays above the Fed’s target, while others signaled little appetite to resume rate cuts in the near term. Participants agreed that although labor market risks have eased, the threat of persistently high inflation remains.