TechFlow news, on November 27, according to Jinshi News, "Fed Whisperer" Nick Timiraos wrote that Fed officials at their earlier-month meeting discussed the possibility of slowing down or pausing rate cuts if progress on lowering inflation stalls.
According to minutes released on Tuesday, officials said that if the economy performs in line with their expectations—specifically, inflation continues to decline steadily—"it may be appropriate to gradually move toward a more neutral policy rate setting."
The minutes showed all 19 officials who participated in the discussion agreed to lower the Fed's benchmark short-term interest rate by 25 basis points. Some policymakers noted that risks of a more pronounced slowdown in the labor market or the economy since the September meeting had diminished.
Many of them also expressed greater uncertainty about where exactly interest rates should be set for an economy that neither requires stimulus nor monetary restraint. The minutes stated that these considerations "make it appropriate to gradually reduce policy restraint."
