MADRID 26 Nov. () –
The US Federal Reserve (Fed) has anticipated that if the data arrives approximately “as expected”, that is, inflation continues to decline sustainably to 2% and the economy remains near maximum employment, it would probably be appropriate to move forward. gradually towards a more neutral monetary policy stance.
However, it will carefully evaluate incoming data, the evolving outlook and the balance of risks when making future interest rate decisions.
This is clear from the minutes of the central organization’s last monetary policy meeting, in which the Federal Open Market Committee (FOMC) decided to lower interest rates by 25 basis points, leaving them in the target range of 4.50% to 4.75%.
Among other things, the committee has taken into account that inflation has made progress towards the 2% target but remains somewhat elevated. In addition, he noted that economic activity has continued to expand at a solid pace and that labor market conditions have improved.
However, the committee has stated that it would be prepared to adjust the monetary policy stance as appropriate if risks arise that could impede the achievement of inflation targets.
At the November meeting, committee members noted that further recalibration of the monetary policy stance would help maintain the strength of the economy and labor market, while continuing to allow for further progress on inflation. Thus, they considered it “appropriate” to continue the process of reducing rates.
For now, the risks to achieving employment and inflation goals are roughly in balance, according to most Fed members, who have deemed the economic outlook “uncertain.”
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