Most Officials Worried Inflation Could Be More Persistent

The Federal Reserve (The Fed) released the minutes from their latest meeting, showing that the majority of officials at the central bank of the United States expect inflation to last longer than previously anticipated.

In the discussion, many committee members expressed concerns that price pressures have not completely eased, despite signs of a slowdown in some sectors. They highlighted that the still-tight labor market and strong consumer demand could be factors driving inflation to remain high.

The minutes also indicate that The Fed will remain cautious in making decisions regarding interest rate cuts. Most members stated that a reduction in interest rates would only be considered if there is a strong enough confidence that inflation is truly heading towards the 2% target.

Financial markets responded to these minutes cautiously, as they reinforced expectations that high interest rates will persist longer.