Leaving interest rates at their current levels is likely to remain appropriate for some time, according to the assessments offered by Federal Reserve officials in the minutes of the central banks latest monetary policy meeting. The minutes of the January meeting, released Wednesday afternoon, made several references to the coronavirus outbreak but are likely to reinforce expectations that the Fed will remain on hold at upcoming meetings.
Meeting participants viewed the current stance of monetary policy as likely to remain appropriate for a time as long as incoming data remains consistent with the Feds outlook for moderate economic growth. Of course, if developments emerged that led to a material reassessment of the outlook, an adjustment to the stance of monetary policy would be appropriate, in order to foster achievement of the Committees dual-mandate objectives, the Fed said. The minutes said participants concurred that maintaining the current stance of policy would give the Fed time for a fuller assessment of the effects of last years interest rate cuts.
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