Dollar interest rates set by the Federal Reserve Rather, they must remain restrained long enough to ensure that inflation returns to the 2% target. This is the main message reiterated in the minutes of the latest monetary policy meeting, the Federal Open Market Committee, which was held on October 31 and November 1, and whose report was published today by the monetary institution.
It does not appear to offer any major new elements compared to the framework that already emerged on November 1, after rates at 5.25-5.50% were confirmed as largely stable for the coming months.
In the United States, “inflation remains high but continues to show signs of slowing,” according to Fed technicians. Growth remained strong in the third quarter, and FOMC members, while acknowledging the continued slowdown in inflation, noted that there was only limited progress in slowing prices for key services.
FOMC participants noted that inflation remains well above the 2% target and that high inflation continues to hurt businesses and households. But at the same time, the unbalanced situation in the labor market is declining.
Regarding monetary policy, according to the minutes of the FOMC meeting, it was agreed that it was critical that the monetary policy line remain sufficiently restrictive to return inflation to 2% in the medium term. All agreed that the Committee was in a position to proceed with caution, and that it must decide on a case-by-case basis based on all available information. The decision to confirm prices was unanimous.
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