♦️The minutes of the U.S. Open Market Committee meeting #للفيدرالي , held on May 6 and 7, 2025, and issued as a document today Wednesday, indicate that discussions went beyond the issue of keeping the interest rate at 4.25% and 4.5%, reaching a radical review of the monetary policy strategy itself.
♦️Members discussed whether the current strategy based on "flexible average inflation targeting" is still appropriate in an environment characterized by sudden inflationary shocks, with lower risks of reaching the effective lower bound for interest rates.
♦️Several participating members indicated that the strategy of compensating for periods of low inflation adopted by the board in recent years may have lost its effectiveness now.
♦️The new environment, according to the minutes, requires a more flexible strategy that allows addressing deviations from both sides, namely excessive inflation and excessive decline, and members debated the idea of modifying the formal wording in the board's long-term goals statement.
