The Federal Open Market Committee’s (FOMC) latest minutes from its December 17-18 meeting reveal a more cautious approach to rate cuts, reinforcing expectations that the central bank will pause its rate cuts in January. While the Fed lowered its policy rate by 25 basis points in December to a range of 4.25%-4.50%, members of the Federal Open Market Committee (FOMC) described the decision as “finely balanced.” They weighed the need to maintain economic strength against the goal of continuing progress on inflation.

 

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