Fed needs more progress in inflation for rate cut

By Gokhan Ergocun

ISTANBUL (AA) - The US Federal Reserve's minutes, released Wednesday, showed that the federal monetary authority needs more progress for continuing rate cuts.

Recent indicators suggest that economic activity has continued to expand at a solid pace, the bank said and added that the unemployment rate has stabilized at a low level, labor market conditions remain solid, and inflation remains somewhat elevated.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run," it stated.

Noting that the committee judges that the risks to achieving its employment and inflation goals are roughly in balance, it said the economic outlook is still uncertain.

In support of its goals, the committee decided to maintain the target range for the federal funds rate at 4.25% to 4.5%, the Fed said.

From September 2024 to December 2024, the Fed lowered its policy rate from 5.5% to 4.5% and kept the rate constant last month.

The annual inflation rate decreased from 3.5% to 2.4% from April 2024 to September 2024 in the US but re-escalated till 3% from September to January gradually.