The official minutes from the April 30-May 1 policy meeting of the Federal Open Market Committee were released Wednesday, showing that officials continue to worry about inflation and lack the confidence to start cutting interest rates.
Inflation has remained stubbornly high this year and has yet to drop to the 2% level that the Fed targets to begin lowering interest rates. “Participants observed that while inflation had eased over the past year, in recent months there had been a lack of further progress toward the Committee’s 2 percent objective,” the meeting summary said. “The recent monthly data had showed significant increases in components of both goods and services price inflation.”
All members of the committee voted to keep the benchmark short-term borrowing rate at its 23-year high of 5.25% to 5.5% where it has been since July 2023.
“Participants assessed that maintaining the current target range for the federal funds rate at this meeting was supported by intermeeting data indicating continued solid economic growth,” the minutes said.
