MAY 28, 2024 – FED MAY MEETING MINUTES RELEASED, INFLATION CONCERNS
Minutes from the Fed’s last meeting on April 30–May 1 were released last week. It stated the members remain concerned inflation has not been moving towards their 2 percent target in the last months, and some members are showing a willingness to further tighten monetary policy should the data warrant such a move.
There have been hopes for multiple rates decreases in 2024 since the beginning of the year, but with the inflation remaining high, the Fed has indicated they do not have the confidence to move forward on rate reductions. Fed Chair Powell has said they doubt the next move in rates will be a hike, but it seems not all members are in complete agreement.
Officials are optimistic about economic growth prospects and believe inflation will eventually trend down to the 2 percent target. But there is uncertainty on how long that will take. Futures pricing indicate a 60 percent chance of a rate cut in September, and a second cut occurring in December is priced at 50 percent.