Washington: The latest minutes of the US Federal Reserve (Fed) monetary policy meeting showed that the central bank was still “patient” on further rate hikes.
In light of global economic and financial developments and muted inflation pressures, members concurred that the central bank’s Federal Open Market Committee (FOMC) could be patient as it determined what future adjustments to the target range for the federal funds rate may be appropriate to support those outcomes, according to the minutes of the Fed’s March 19-20 meeting, Xinhua reported on Wednesday.
After concluding a two-day policy meeting on March 20, the Fed decided to maintain the target range for the federal funds rate at 2.25 per cent to 2.5 per cent.
Meanwhile, the majority of policy makers so far see no rate hikes for the year 2019.
“With regard to the outlook for monetary policy beyond this meeting, a majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year,” said the minutes.
However, some of the policymakers remained open to changing their attitude if the situation develops, seeing more rate hikes “appropriate” if the economy runs at higher than the normal growth rate.
“Several participants noted that their views of the appropriate target range for the federal funds rate could shift in either direction based on incoming data and other developments,” said the minutes.
“Some participants indicated that if the economy evolved as they currently expected, with economic growth above its longer-run trend rate, they would likely judge it appropriate to raise the target range for the federal funds rate modestly later this year,” said the minutes.
