Disinflation may be slower than expected, warns most Fed members

Some Fed members predict further interest rate cuts. in the US if inflation falls as expected, but most warned that disinflation may be slower than expected, according to the minutes of the last Fed meeting.

“Several participants said that further reductions in the target range for the federal funds rate would likely be appropriate if inflation declines as they expect,” Minutes said.

At the same time, it was indicated that when debating monetary policy during the January Fed meeting, participants noted that inflation remained at a slightly elevated level, and available indicators suggested that economic activity was developing at a solid pace.

“However, most participants warned that progress towards the Committee's 2% target may be slower and more uneven than generally expected and assessed the risk of inflation remaining above the Committee's target as significant,” the minutes wrote.

It was added that some of these participants referred to information from business representatives who expect price increases this year in response to cost pressure, including: related to customs duties.

After the meeting on January 27-28, the Fed left interest rates unchanged. in the USA unchanged in the range of 3.50-3.75%.

The next meeting of the Reserve is scheduled for March 17-18.

The dollar is strengthening against the basket of currencies by 0.62%. to 97.72 points, and the profitability of 10-year Treasuries increases by 2 basis points. up to 4.08 percent (PAP Business)

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