Fed retains higher for longer stance in wait for inflation 'moving sustainably' to target

FOMC minutes

The Federal Open Market Committee (FOMC) held interest rates steady last month after arguing the US economy was moving in the right direction, but more data was needed to instil confidence for a potential rate cut.

In the minutes for its 12 June meeting published on Wednesday (3 July), committee members noted there were factors contributing to the continued disinflation ahead, but they needed more data showing that inflation was "moving sustainably" towards the 2% target. US inflation fell to 3.3% in May, while job vacancies fell to 8.1 million – the lowest level since February 2021. US inflation falls to 3.3% in May However, some participants noted there was uncertainty around the economic outlook and "how long it will be appropriate to maintain a restrictive policy stance", while others emp...