Fed says policy rate likely at peak for this tightening cycle

Minutes from the last Federal Reserve meeting read, “In discussing the policy outlook, participants judged that the policy rate was likely at its peak for this tightening cycle. They pointed to the decline in inflation seen during 2023 and to growing signs of demand and supply coming into better balance in product and labor markets as informing that view. Participants generally noted that they did not expect it would be appropriate to reduce the target range for the federal funds rate until they had gained greater confidence that inflation was moving sustainably toward 2 percent. Many participants remarked that the Committee’s past policy actions and ongoing improvements in supply conditions were working together to move supply and demand into better balance.”