Federal Reserve officials have generally agreed that they are unlikely to have to reduce interest rates again unless the economic situation changes significantly, according to the minutes published on Wednesday since their last meeting.
At the end of October, central bankers lowered their refinancing reference rate to a range of 1.5% to 1.75%, the third such step in 2019.
However, the "majority" of the Federal Leisure Market Committee steps to support the prospects of moderate growth, a strong labor market and inflation close to the symmetric 2% committee target, "said the meeting summary.
The policy stance" is likely to stay "where it is, unless it results in
However, they argued that the policy is not pre-set, although it is likely to remain suspended, and members will continue to consider changes in data and T general outlook. Fed policies are working with delays that may take a year or more, so they intend to watch how pr the move to simpler policy will affect financial conditions, cuts began in July, only seven months after the committee approved the fourth interest rate increase in 2018.
These sentiments are largely in line with recent public statements by Fed officials.
Chairman Jerome Powell last week in a congressional testimony, said he also feels good with the attitude of politics. This includes a low likelihood of a rate hike: Following the FOMC meeting of 29-30 October, he further said he did not expect an increase unless there was a significant increase in inflation.
Risks of Adverse Development for the Economy  Discussions at the meeting indicated that members feel that the US economy is in a relatively strong position, with a healthy labor market and a strong appetite for spending among consumers, whose activity accounts for about 70% of GDP.
However, they also see "the risks of a slowdown in the economic outlook are increased, which further emphasizes the reason for the rate cuts" at the October meeting. They reported a reduction in business investment and exports due to "weak global growth and increased uncertainty about business developments".
They noted that the concerns about both questions had "slightly eased".
The US and China were locked in a two-year business skirmish that noticed that both sides were leveling out hundreds of billions of dollars against each other. The latest headlines point to some thawing, although CNBC announced earlier this week that Beijing remains pessimistic that the deal will be concluded.
FOMC members voting in favor of the rate cut also mentioned the benefits that lower rates would provide as a safeguard against the problems ahead. They also expressed concern about inflation, which is constantly falling below the Fed's 2% target. All but two members of the committee voted in favor of the reduction, but the dissidents considered that no further accommodation was necessary.
U.S. economic activity probably fell significantly in the fourth quarter. New York and Atlanta Fed GDP followers put Q4 profits at less than half a percent, though according to the CNBC Rapid Update, it is around 1.5%.
The Federal Free Market Committee published the minutes of 29-29 October on Wednesday. 30 meetings. The Committee voted in favor of reducing its reference interest rate by a quarter point to a range of 1.5% – 1.75%.