Fed concerned about cutting rates too soon


Crucial data: Traders work on the floor of the New York Stock Exchange. US stocks fell slightly following the release of the minutes while the US dollar was little changed against a basket of currencies. — AFP

WASHINGTON: The bulk of policymakers at the Federal Reserve’s (Fed) last meeting were concerned about the risks of cutting interest rates too soon, with broad uncertainty about how long borrowing costs should remain at their current level, according to the minutes of the Jan 30-31 session.

“Participants highlighted the uncertainty associated with how long a restrictive monetary policy stance would need to be maintained” to return inflation to the Fed’s 2% target, said the minutes, which were released on Wednesday.

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