watch
now
Federal
Reserve
officials
at
their
June
meeting
indicated
that
inflation
is
moving
in
the
right
direction
but
not
quickly
enough
for
them
to
lower
interest
rates,
minutes
released
Wednesday
showed.
“Participants
affirmed
that
additional
favorable
data
were
required
to
give
them
greater
confidence
that
inflation
was
moving
sustainably
toward
2
percent,”
the
meeting
summary
said.
Though
the
minutes
reflected
disagreement
from
the
19
central
bankers
who
took
part
in
the
discussion,
with
some
even
indicating
a
penchant
toward
raising
rates
if
necessary,
the
meeting
concluded
with
Federal
Open
Market
Committee
voters
holding
rates
in
place.
The
Fed
targets
2%
annual
inflation,
a
level
it
has
been
above
since
early
in
2021.
Officials
at
the
meeting
said
data
has
improved
lately,
though
they
are
want
more
evidence
that
it
will
continue.
Meeting
participants
“emphasized
that
they
did
not
expect
that
it
would
be
appropriate
to
lower
the
target
range
for
the
federal
funds
rate
until
additional
information
had
emerged
to
give
them
greater
confidence
that
inflation
was
moving
sustainably
toward
the
Committee’s
2
percent
objective.”
At
the
meeting,
policymakers
also
provided
an
update
on
economic
projections
and
monetary
policy
over
the
next
several
years.
The
FOMC
“dot
plot”
showed
one
quarter
percentage
point
cut
by
the
end
of
2024,
down
from
the
three
indicated
following
the
last
update
in
March.
Even
though
the
dot
plot
indicated
one
cut
this
year,
futures
markets
continue
to
price
in
two,
starting
in
September.
Also,
the
committee
largely
left
its
economic
projections
intact,
though
they
lowered
their
inflation
expectations
for
this
year.
In
discussions
over
how
they
would
approach
monetary
policy,
the
minutes
reflected
some
disagreements.
Some
members
noted
the
need
to
tighten
the
reins
should
inflation
persist,
while
others
made
the
case
that
they
should
be
ready
to
respond
should
the
economy
falter
or
the
labor
market
weaken.
“Several
participants
observed
that,
were
inflation
to
persist
at
an
elevated
level
or
to
increase
further,
the
target
range
for
the
federal
funds
rate
might
need
to
be
raised,”
the
minutes
stated.
“A
number
of
participants
remarked
that
monetary
policy
should
stand
ready
to
respond
to
unexpected
economic
weakness.”
The
minutes
do
not
identify
individual
members
nor
do
they
provide
exact
amounts
for
the
number
of
officials
expressing
particular
viewpoints.
However,
in
the
Fed
parlance,
“a
number”
is
considered
more
than
“several.”
The
summary
also
noted
a
“vast
majority”
saw
economic
growth
“gradually
cooling”
and
that
the
current
policy
is
“restrictive,”
a
key
term
as
the
officials
contemplate
how
restrictive
policy
needs
to
be
while
bringing
down
inflation
and
not
causing
undue
economic
harm.
Since
the
meeting,
officials
have
largely
stuck
to
a
cautious
script
stressing
data
dependency
rather
than
forecasts.
However,
there
have
been
indications
from
multiple
officials,
including
Chair
Jerome
Powell,
that
continued
encouraging
readings
on
inflation
would
provide
confidence
that
rates
can
be
lowered.
In
an
appearance
Tuesday
in
Portugal,
Powell
said
the
risks
of
cutting
too
soon
and
risking
a
resurgence
in
inflation
against
cutting
too
late
and
endangering
economic
growth
have
come
more
into
balance.
Previously,
officials
had
stressed
the
importance
of
not
backing
off
the
inflation
fight
too
soon.
