Federal Reserve officials expressed confidence that inflation is easing and the labor market is strong, allowing for further interest rate cuts albeit at a gradual pace, according to minutes from the November meeting released Tuesday.
In addition, they expressed uncertainty over where the rate cuts would need to stop before the Fed hit a "neutral" interest rate that neither boosts nor restrains growth.
Conflicting signals on inflation and the uncertainty over Trump's policies have caused traders to scale back their outlook for interest rate cuts ahead.
Officials indicated that the state of the labor market is generally solid.
"Participants generally noted … that there was no sign of rapid deterioration in labor market conditions, with layoffs remaining low," the minutes said.
Persons:
FOMC, Donald Trump's
Organizations:
Federal, Market, stoke, Republican, Fed