Federal Reserve officials generally agreed that they probably won't need to cut interest rates again unless economic conditions change significantly, according to papers released Wednesday from their last meeting.
Central bankers in late October cut their benchmark overnight rates a quarter to a 1.5% -1.75% range, the third such move in 2019.
However, "most" members of the Federal Open saw The Market Committee features as enough "to support the prospect of moderate growth, a strong labor market and inflation close to the Committee's symmetrical 2 percent goal," the meeting summary states.
The policy attitude "is likely to remain" where it is "as long as incoming information on the economy did not result in a substantial reassessment of the economic outlook."
However, they argued that the policy is not on a preset course, even if will probably be on hold and members will continue to consider changes in data and t he general view. Members often note that Fed policy adjustments work on backlogs that may take a year or more to know, so they plan to see how the transition to simpler policy will affect economic conditions. The cuts began in July, just seven months after the Committee approved the fourth rate hike in 201
These sentiments are largely in line with the recent public statements by Fed officials.
Chairman Jerome Powell, in congressional testimony last week, said he also felt comfortable with the stance on politics. This also includes the low probability of an interest rate hike: After the FOMC meeting on 29-30. In October, he further stated that he does not expect increases unless there is a significant increase in inflation.
Disadvantages to the economy  Discussions at the meeting indicated that members feel that the US economy is in a pretty strong position, with a healthy labor market and strong consumer desire among consumers, whose activity accounts for around 70% of GDP.
However, they also see "The downside risks surrounding the economic outlook that increased, further emphasizes the matter for a rate cut" at the October meeting. They cited reduced business investment and exports as a result of "weakness in global growth and increased uncertainty regarding trade development."
They noted that the concerns of both questions seem to have "eased something."
The United States and China have been locked into a two-year trading skirmish that has seen the two sides level hundreds of billions of dollars in tariffs against each other. Recent headlines point to some thawing, though CNBC reported earlier this week that Beijing is still pessimistic that a deal will be made.
FOMC members who voted for the cut also cited the benefits lower prices would provide as insurance against problems in the future. They also continued to express concerns about inflation consistently falling below the Fed's 2% target. All but two committee members voted for the cut, with the dissenters believing that no further accommodation was needed.
U.S. economic activity probably slowed significantly in the fourth quarter. New York and Atlanta Fed GDP spurs put Q4 gains below half a percent, even though CNBC's quick update gauge sees the number around 1.5%.
The Federal Open Market Committee on Wednesday released the minutes of its October 29-30 meeting. The committee voted to reduce the reference rate for a quarter to a range of 1.5% -1.75%.