The Federal Open Market Committee released the minutes of its latest meeting, which highlighted that the vast majority of participants said that U.S. economic growth is gradually slowing.
“The vast majority of participants considered that growth in economic activity appears to be gradually slowing, and most participants indicated that they view the current policy stance as restrictive,” the minutes of the meeting said.
Despite this slowdown, the Fed is waiting for additional information before it gains the confidence needed to cut interest rates.
The central bank indicated that it would not consider lowering the federal funds rate target until more data emerged that provided greater assurance that inflation was on a sustainable downward path.
FOMC members said they do not believe it is “appropriate to reduce the target range for the federal funds rate until additional information becomes available that gives them greater confidence that inflation is moving sustainably toward” the 2% goal.
According to the minutes of the FOMC meeting, most participants found the current policy stance to be restrictive, which they expect will further dampen economic activity and inflation.
Policymakers agreed to keep interest rates steady in a range of 5.25% to 5.50%, the level they have been at for a year.
The minutes also revealed a cautious approach among some FOMC members, stressing the need for patience before considering cutting interest rates.
Meanwhile, several members pointed to the potential need to raise interest rates further if inflation showed signs of recovery.