United States Interest Rate

Federal Reserve officials conveyed optimism that inflation is subsiding and the labor market remains robust, supporting the possibility of further interest rate cuts, though at a measured pace, minutes from November 6-7 meeting showed. Officials noted that monetary policy decisions are contingent on economic trends and cautioned against making premature rate cuts. The volatility in recent data and uncertainty about the neutral interest rate's impact on economic activity made policymaking particularly challenging. Some participants suggested keeping rates at restrictive levels if inflation persisted, while others advocated for accelerated cuts if labor markets weakened. The meeting avoided addressing the economic implications of Donald Trump’s recent presidential election victory but acknowledged the need for flexibility.