We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment. While inflation remains above the FOMC’s objective of 2 percent, it has eased substantially and the slowing in inflation has occurred without a significant increase in unemployment. In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook and the balance of risks.

Source: New York Times March 06, 2024 17:17 UTC