Fed Worried About Cutting Too Soon
At their late January meeting, Federal Reserve officials saw the potential negative consequences of cutting rates too soon as outweighing the risk of waiting too long – a balance of opinion that should help ratify market expectations for a hold at the March decision. According to a record of the January 30-31 Federal Open Market Committee meeting, “most participants noted the risks of moving too quickly to ease the stance of policy and emphasized the importance of carefully assessing incoming data in judging whether inflation is moving sustainably down to 2 percent”. Officials noted a series of risks to the...