“The majority of participants” at the US Central Bank’s January monetary policy meeting “highlighted the risks of acting too quickly to make monetary policy more flexible,” detailed the document published on Wednesday.
This group stressed “the importance of carefully evaluating the available data to determine whether inflation falls to 2% on a lasting basis,” the “minutes” of the meeting say.
A premature start to the cuts could lead to a spike in inflation.
“Some participants” at the meeting “underlined the risks for the economy associated with maintaining an overly restrictive stance for a long time,” the text indicates.
In that scenario, the US economy could fall further too quickly, with rising unemployment and a deep recession.
The Monetary Policy Committee of the US Central Bank (FOMC) maintained its reference interest rates in a range of 5.25-5.50%, the same level it has had since July and a maximum in 22 years.
After a year of spectator in the face of price escalationFed Chair Jerome Powell finally decided to act and began raising interest rates.
High rates make credit more expensive and discourage consumption and investment. Only in the major media controlled by the left and in the White House, the American economy remains solid, resilient and with little harmful inflation. For the vast majority of Americans, life and their pocketbooks dictate otherwise.
