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Fed Officials Signal Patience on Interest Rates
25 Feb
Summary
- Federal Reserve officials see no immediate need to alter interest rate policy.
- Officials are awaiting further evidence of moderating inflation before considering cuts.
- Recent trade tariff decisions are not expected to significantly impact the economy.

Federal Reserve officials have signaled a lack of near-term urgency to adjust current interest rate policies. Boston Fed President Susan Collins stated that it is "quite likely" the Federal Reserve will maintain its current rate range for some time, advocating for a patient and deliberate approach to policy decisions. Richmond Fed leader Thomas Barkin echoed this sentiment, suggesting that monetary policy is "well positioned" to address economic uncertainties.
Both officials highlighted the need for more definitive evidence that inflation will continue to moderate towards the central bank's 2% target. While the job market shows signs of stability, persistent inflation above the target remains a key concern. They also noted that recent Supreme Court decisions and subsequent presidential actions regarding trade tariffs are not expected to exert significant economic influence.
Collins described the current monetary policy setting as mildly restrictive or near neutral. The Federal Reserve had previously lowered its target interest rate by three-quarters of a percentage point last year, establishing a range of 3.5% to 3.75%, which was held steady at the latest Federal Open Market Committee meeting. Further rate cuts would require greater confidence in the resumption of easing inflation pressures, with a default outlook suggesting a cooling of these pressures might be expected later this year.




