\u201cMost participants, however, cautioned that progress towards the committee\u2019s 2 per cent objective might be slower and more uneven than generally expected and judged that the risk of inflation running persistently above the committee\u2019s objective was meaningful,\u201d the minutes read. <\/p>\n
The FOMC voted last month to hold borrowing costs steady<\/a> following three straight 0.25 percentage point cuts, leaving the federal funds rate in a range of 3.5 to 3.75 per cent. Two governors dissented from the decision, voting instead for a further quarter-point cut. <\/p>\n Fed<\/a> chair Jay Powell said after the January meeting that the committee would likely keep rates on hold for the foreseeable future as inflation edged lower and the labour market showed \u201cevidence of stabilisation\u201d.<\/p>\n Wednesday\u2019s record of the meeting made clear that most committee members backed that position, with policymakers indicating it would \u201clikely be appropriate to hold the policy rate steady for some time as the committee carefully assesses incoming data\u201d. <\/p>\n Some of them \u201cjudged that additional policy easing may not be warranted until there was clear indication that the progress of disinflation was firmly back on track\u201d.<\/p>\n Several members went further, noting a rate rise \u201ccould be appropriate if inflation remains at above-target levels\u201d.<\/p>\n The Fed targets price stability and maximum employment. <\/p>\n Wednesday\u2019s minutes suggested the Fed was homing in on the inflation side of its mandate given that \u201calmost all members no longer judged that downside risks to employment had risen in recent months\u201d. <\/p>\n On the jobs market, which was dogged by tepid hiring in 2025, rate setters generally agreed that recent data \u201csuggested that labor market conditions may be stabilising after a period of gradual cooling\u201d. <\/p>\n
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