Fed Expects Patient Approach To Rates To Remain Appropriate For Some Time
Members of the Federal Reserve are in no rush to alter the path of interest rates, according to the minutes of the central bank’s latest monetary policy meeting.
The minutes showed members agreed that a patient approach to determining future adjustments to rates would likely remain appropriate for “some time.”
Citing an environment of moderate U.S. economic growth and muted inflation pressures, the Fed expects to remain patient even if global economic and financial conditions continued to improve.
The Fed decided to leave interest rates unchanged at the two-day meeting ended May 1st, as uncertainties affecting the U.S. and global economic outlooks had receded but inflation pressures remained muted.
The minutes showed members agreed future interest rate adjustments would be based on realized and expected economic conditions relative to the Fed’s maximum-employment and symmetric 2 percent inflation objectives.
While the Fed noted a moderation in risks and uncertainties surrounding the economic outlook, such as trade negotiations, the meeting was held before the collapse of U.S.-China trade talks.
The central bank is scheduled to hold its next monetary policy meeting on June 18th and 19th, with CME Group’s FedWatch tool currently indicating a 95 percent chance the Fed will leave rates unchanged.
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