The Fed's letter on the decision to cut the interest rate by 0.25 percentage points has been published.
Key:
- The decision was unanimous.
- Inflation has moved toward 2%, but remains elevated.
- We have become more confident in the sustainable movement of inflation toward the 2% target.
- Labor market conditions have improved since the beginning of the year, and have generally softened. The unemployment rate has increased, but remains low.
- The Fed believes that the risks to the employment and inflation targets are balanced.
- The Fed's future monetary policy depends on macro data.
- Economic activity continues to grow at a solid pace. However, the economic outlook is uncertain.
- The Fed will continue to reduce its balance sheet at the current pace.