Federal Reserve officials were unable to change interest rates as at their last meeting, even if the economy continued to strengthen, and some were concerned about continued low inflation, minutes from their policy meeting meeting between 30 April and May 1st.
Inflation decreased to 1.6 per cent each year in March, well below the nutritional target for 2 per cent price increases, according to a report issued in April 29. It has not reached the target sustainably since the bank adopted. It was formally led in 2012, and is concentrating below the segmental line for most of the previous fourth century.
“In light of recent softer inflation readings, some felt that the risks behind inflation had increased,” according to the minutes of the meeting, which were released after a typical three-week delay.
It is taking a fan-and-see approach to the Fed's interest rate change.
“Participants noted that even if global economic and financial conditions continue to improve, it is likely that a patient approach would be needed, particularly in an environment where moderate sustained economic growth and inflationary pressure is sound,” said the minutes. .
A soft problem for Reading is soft price readings, which it aims to make slow, steady increases. Gradual inflation allows wages to rise and provides space to fully protect against price reductions when the economy weakens. Officials also see 2 percent hitting in a symmetrical way – so that they are higher than the target as often as they are below – as important as their credibility.
The FED continued to attribute some of the inflation trends to temporary factors that may be quite early.
“At least some of the recent inflation could be attributed to abnormal factors that only had a transient effect on inflation.” However, participants said “enough” if inflation was not increased in the next quarters, there was a danger There could be lower inflation expectations. This could make it even harder to get price increases back to the 2 percent target.
Policy makers unchanged rates at their last meeting and renewing their commitment to be patient before increasing additional rates. The central bank raised nine-hour rates between the end of 2015 and the end of last year, and four of the increases were under the chairmanship of Chairman Jerome H. Powell.
President Trump has criticized these movements, calling for a threat to the US economy as a result of the FED and boosting growth and encouraging its rates. lowered.
Mr Powell stressed that Mr Trump chose to lead the central bank, repeatedly that the FED is independent of the White House and said that it does not allow politics to influence its decisions.
At the time of the dietary meeting, the markets were expecting to charge a rate later this year, which confirmed that soft inflation would activate officials. Mr Powell did not have this view during his postgraduate news conference, and instead highlighted the problem of recent or recent price increases.
The minutes also do not indicate a desire to charge a rate. Indeed, while the majority of committee members would prefer continued patience, “a number of participants said that if the economy were to emerge, the committee was likely to have to uphold the position of monetary policy in order to maintain economic expansion and inflation. kept at levels consistent with the purpose of the committee. ”