Among Fed leaders, there is currently a divided view on inflation and interest rate developments, according to the latest minutes published by the central bank.
All but two members voted in January to leave the policy rate unchanged in the range of 3.50–3.75 percent after three rate cuts by the end of 2025.
The minutes highlight that interest rate cuts may be possible later this year, but inflation must be contained. Some quarters have raised the possibility of interest rate increases and said that clearer signals should have been given in connection with the previous interest rate announcement.
From a market perspective, it is seen as 94 percent likely that the policy rate will be kept unchanged at the next meeting.
