Fed Minutes Confirm No Immediate Rate Cuts, Citing Stubborn Inflation and Strong Jobs

Despite three cuts late last year, the Fed agreed to keep its key rate steady at 3.6%, reflecting a deeply divided committee. A "vast majority" of the 19 participants observed a stabilized job market, with the unemployment rate at 4.3% and 130,000 jobs added in January.

While some officials suggested cuts might be appropriate if inflation continues to decline, others favored maintaining rates unchanged "for some time," and a few even considered language signaling openness to a rate hike if inflation persists above the 2% target. Chair Jerome Powell hinted at a potential wait of a few months before further monetary policy adjustments.

Recent economic data, including January's 2.4% consumer price growth and an anticipated 3% for the Fed's preferred inflation measure, alongside robust job growth, reinforce the cautious stance, making immediate rate cuts unlikely.