financetom
Economy
financetom
/
Economy
/
US Monetary Policy in Good Position to Wait for Clarity on Inflation Outlook, FOMC Minutes Show
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US Monetary Policy in Good Position to Wait for Clarity on Inflation Outlook, FOMC Minutes Show
May 28, 2025 11:43 AM

02:15 PM EDT, 05/28/2025 (MT Newswires) -- The Federal Open Market Committee can wait for more clarity on the progression of the economy before making changes to policy, minutes of the May 6-7 FOMC meeting released Wednesday showed.

"In considering the outlook for monetary policy, participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the Committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity," the minutes showed. "Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer."

The participants' discussion was reflected in the FOMC's post-meeting statement that indicated upside risks for both inflation and unemployment and have been echoed in recent comments from Fed officials.

There was a general concern among the participants that tariffs could lead to more persistent inflation. While there has been some pullback on tariffs plans from the Trump administration, the uncertainty remains a key factor.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
No surprises seen in US debt issuance: T-Bills up, bonds steady
No surprises seen in US debt issuance: T-Bills up, bonds steady
Nov 3, 2025
NEW YORK (Reuters) -The U.S. Treasury is widely expected this week to announce its intention to keep note and bond auction sizes unchanged over the next 12 months, at least, as it likely continues to issue more bills and shorter-term debt to manage a sizable fiscal deficit. The Treasury will release its quarterly borrowing estimates on Monday at 3:00 p.m....
Fed's Goolsbee is on fence about need to cut rates in December
Fed's Goolsbee is on fence about need to cut rates in December
Nov 3, 2025
(Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said on Monday he's in no hurry to cut interest rates again with inflation still too far above the central bank's 2% target.  I'm not decided going into the December meeting and my threshold for cutting is a little bit higher than it was at the last two meetings, Goolsbee said...
US manufacturing contracts further in October; supplier delivery times lengthen
US manufacturing contracts further in October; supplier delivery times lengthen
Nov 3, 2025
WASHINGTON (Reuters) -U.S. manufacturing contracted for an eighth straight month in October as new orders remained subdued, and suppliers were taking longer to deliver materials to factories against the backdrop of tariffs on imported goods. The Institute for Supply Management (ISM) said on Monday its manufacturing PMI fell to 48.7 last month from 49.1 in September. A reading below 50...
Fed's Daly says she backed latest rate cut, open to another one in December
Fed's Daly says she backed latest rate cut, open to another one in December
Nov 3, 2025
(Reuters) -San Francisco Federal Reserve President Mary Daly on Monday said she supported the U.S. central bank's interest rate cut last week, and will want to sift through incoming data to assess if another reduction in borrowing costs is warranted at the December 9-10 meeting. I thought it was appropriate to take another bit off the policy rate, she said...
Copyright 2023-2026 - www.financetom.com All Rights Reserved