PANews May 29 news, according to CCTV News, on May 28 local time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting from May 6 to 7. The minutes showed that the Federal Reserve agreed to maintain the target range of the federal funds rate between 4.25% and 4.5%. Participants agreed that the committee will carefully evaluate subsequent data, changing prospects, and the balance of risks when considering the magnitude and timing of further adjustments to the federal funds rate target range. The minutes stated that in assessing the appropriate monetary policy stance, the committee will continue to monitor the impact of future information on the economic outlook. If risks arise that could hinder the achievement of the committee's goals, they will be prepared to adjust the monetary policy stance as appropriate. Participants said their assessments will take into account a wide range of information, including labor market conditions, inflationary pressures and inflation expectations, as well as financial and international developments.
The Committee assessed that uncertainty about the economic outlook had increased further, with risks of higher unemployment and higher inflation rising somewhat. Participants noted that the Committee could face difficult trade-offs if inflation persists while the outlook for economic growth and employment weakens. The magnitude of the ultimate adjustments in government policies and their effects on the economy are highly uncertain. Against this backdrop, all participants judged that it was appropriate to maintain the target range for the federal funds rate at 4-1/2 to 4-1/2 percent. In considering the outlook for monetary policy, participants agreed that the Committee was well positioned to wait for greater clarity on the outlook for inflation and economic activity, given that economic growth and the labor market remain solid. It would be appropriate to adopt a cautious approach until the net economic effects of a series of government policy adjustments become clearer.
In addition, according to Jinshi, the minutes of the Federal Reserve meeting pointed out that the baseline policy path implied by option prices (representing mainstream market expectations) moved slightly downward during this period, indicating that there may be 1 to 2 interest rate cuts (25 basis points each) by the end of the year.
