Officials want more data to be confident that inflation is abating, according to the minutes of their July 25-26 meeting.
As recently as three weeks ago, most Federal Reserve officials said they still viewed high inflation as an ongoing threat that could merit additional interest rate increases. Wednesday.
According to the minutes,"[M]ost participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy." Even so, some analysts on Wall Street are forecasting the Fed might pause on further rate hikes this year and start cutting rates in 2024, pointing to the ongoing trend of lower inflation throughout the year. But the Fed has long signaled that it wants inflation to return to the 2% range before easing up on its campaign of rate increases.
Earlier this week, economists at Goldman Sachs projected that the Fed will skip a rate hike in September and actually start to cut rates by the middle of next year.
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