Fed officials expect to wait longer to cut rates as inflation progress falters: Fed officials concluded at their most recent meeting that they need to keep interest rates at current levels longer than previously expected.
U.S. inflation data disappointed for the third straight month last month. While officials still believe rates are high enough to dampen economic activity and reduce inflation, they signaled they are less certain about how restrictive policy will be, according to the latest minutes.
An unknown number of officials mentioned they are willing to tighten policy further if inflation risks make it justifiable. Price pressures slowed noticeably in the second half of last year, and Fed officials hinted in March that they might be ready to start cutting rates if there was another month or two of tame inflation.
But a slew of first-quarter data showed price pressures in the economy were heating up, and the Fed has been forced to shelve any considerations of starting to cut rates in the coming months unless the job market weakens unexpectedly.
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