Jerome Powell, chairman of the US Federal Reserve, speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, US, on Wednesday, Dec. 13, 2023. The Federal Reserve held interest rates steady for a third meeting and gave its clearest signal yet that its aggressive hiking campaign is finished, forecasting a series of cuts next year.
(Bloomberg) -- Here are key takeaways from minutes of the Federal Reserve's Dec. 12-13 meeting, released Wednesday:
- No sign of imminent rate cuts: Policymakers say their projections imply reductions “would be appropriate by the end of 2024” and several suggest rates could stay at current level for longer than they currently anticipate
- The benchmark rate was seen as likely at or near its peak, though officials note that further rate hikes remain possible if the economy warrants them
- In addition, Fed officials stressed a “careful” approach to rate decisions and reaffirmed that policy should remain restrictive “for some time” until inflation was more sustainably moving toward central bank's target
- At the same time, officials acknowledge “clear progress” in 2023 toward Fed's 2% inflation goal
- Several Fed officials suggested that well before any decision to slow the balance-sheet reduction, the central bank should begin to discuss technical factors that would guide such an action
For Bloomberg's TOPLive blog on the Fed minutes, click here
--With assistance from Craig Torres.
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