TechFlow news — On December 13 local time, according to the latest minutes from the Federal Open Market Committee (FOMC) monetary policy meeting, the Federal Reserve decided to maintain its pace of slowing rate hikes, keeping the target range for the federal funds rate at 5.25% to 5.50%. Powell noted that the committee is proceeding cautiously and cannot rule out the possibility of further rate increases at this stage. This indicates that the Fed will not adjust the benchmark interest rate in the short term. Earlier dot plots indicated that the Fed would cut rates three times next year. Powell stated that if conditions warrant, the central bank stands ready to tighten monetary policy further, and policymakers do not want to eliminate the possibility of additional rate hikes. However, Powell himself believes the likelihood of rate hikes next year is small.
Powell added that even without an economic recession, the Fed would be willing to cut rates, and it would not wait until inflation reaches 2% to begin easing, as that would be too late—by then inflation could overshoot the target, and it takes time for policy to affect the economy.
