Key Points
Participants viewed the policy rate as likely at or near its peak for this tightening cycle, according to the minutes of the Dec. 12-13 Federal Open Market Committee meeting released Wednesday...
That said, officials reaffirmed that it would be appropriate for policy to remain at a restrictive stance for some time until inflation was clearly moving down sustainably...
The minutes indicated increased optimism among participants about the path of inflation, noting clear progress. The committee expressed a willingness to cut the benchmark lending rate in 2024 should that trend continue, though the timing of such a move remained uncertain...
In their submitted projections, almost all participants indicated that, reflecting the improvements in their inflation outlooks, their baseline projections implied that a lower target range for the federal funds rate would be appropriate by the end of 2024, the minutes said.. Treasury yields increased and the S&P 500 remained weaker following the report..
A tweak to the Feds post-meeting statement also highlighted the shift in tone, with officials noting they will monitor a range of data and developments to see if any additional policy firming is appropriate.. March Expectation..
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