Federal Open Market Committee members agreed that a cautious approach to monetary policy was the best course of action given the uncertainty about the economic effects of an array of policies being pursued by the current administration, according to minutes from the FOMC’s March 18-19 meeting.
During the meeting, the FOMC decided to hold the target range for the federal funds rate at 4.25% to 4.5%. The minutes show that a majority of FOMC participants noted the potential for inflationary effects arising from various factors to be more persistent than they projected. “With economic growth and the labor market still solid and current monetary policy restrictive, participants assessed that the committee was well positioned to wait for more clarity on the outlook for inflation and economic activities,” according to the minutes.
