Lates News

Federal Reserve officials expressed concerns about inflation again, with some policymakers suggesting that the central bank may need to raise interest rates if inflation remains persistently above target. The minutes of the January meeting of the Federal Reserve showed that "several participants noted that they might support a symmetric approach to future rate decisions, reflecting the possibility that an increase in the target range for the federal funds rate could be appropriate if inflation remains persistently above target." The minutes also indicated that "the majority of participants judged that the downside risks to employment had eased in recent months, but the risks of persistently high inflation remained." According to the latest meeting minutes, a group of policymakers believe that it is unlikely that further rate cuts will occur, at least in the short term. The minutes stated, "Several participants cautioned that further policy accommodation in the context of elevated inflation readings might be misinterpreted as a weakening of the policymakers' commitment to the 2% inflation target."