FOMC Minutes: Nearly All Members Agree It Would Be Appropriate to Take a Dovish Posture in 2024

  • Consumer price inflation has continued to fall, but recent progress has been uneven.
  • The disinflation process continues along a path that is generally considered somewhat uneven.
  • Participants generally felt that the risks to achieving the Committee’s employment and inflation targets were becoming more balanced.
  • Participants generally expressed uncertainty that high inflation would persist and felt that recent data had not increased their confidence that inflation would fall sustainably to 2%.
  • A few participants noted that they expected inflation in basic non-housing services to decline as the labor market continues to balance and wage growth moderates further.
  • Participants discussed the still high rate of inflation in housing services and commented on the uncertainty over the timing and extent of the decline in rent growth figures on new leases that would impact this category of housing. inflation.
  • Some participants noted that increased immigration, which likely spurred growth in personal consumption spending, may also have increased demand for housing.
  • Many participants cited indicators such as higher credit card balances, increased reliance on buy now, pay later programs, or increasing default rates on certain types of consumer loans, such as proof that the finances of certain low- or moderate-income households could be degraded. put yourself under pressure
  • The economic projection prepared by IMF staff for the March meeting was better than that of January. The upward revision to the forecast primarily reflects staff’s incorporation of a higher projected trajectory for the population due to the immigration boost.

Full Text

There was no market reaction to the minutes.

This article was written by Adam Button at


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