In their most recent meeting, a majority of Federal Open Market Committee participants cautioned that progress toward the Federal Reserve’s 2% objective might be “slower and more uneven than generally expected” and that the risk of inflation running persistently above that objective “was meaningful,” according to minutes from the FOMC’s Jan 27-28 meeting.
The FOMC voted at the meeting to hold the target range for the federal funds rate at 3.5%-3.75%, with Fed Governors Christopher Waller and Stephen Mirran voting against the motion because they preferred further cuts. However, the minutes show that many FOMC members instead preferred to wait for further data before making a decision on whether to raise or lower rates.
“Several participants indicated that they would have supported a two-sided description of the committee’s future interest rate decisions, reflecting the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels,” according to the minutes.
