The minutes from the United States Federal Open Market Committee (FOMC) last policy meeting, released on Tuesday, indicated a split among members regarding the future direction of monetary policy. While some members advocated for pausing monetary easing and maintaining restrictive policy if inflation remains high, others suggested that easing could be considered sooner if the labor market weakened or economic activity slowed.
Policymakers noted that if inflation continues its gradual decline toward the 2% target and the economy maintains near maximum employment, a gradual shift toward a more neutral policy stance would likely be appropriate over time. According to respondents, a 25 basis point cut was considered appropriate at the November meeting, with the possibility of another 25 basis point reduction next month.
"Participants indicated that they remained confident that inflation was moving sustainably toward 2%, although a couple noted the possibility that the process could take longer than previously expected," the document revealed.
