Federal Reserve officials continued to worry about the risk that inflation’s slowdown could stall during their policy meeting last month, minutes released Wednesday showed. That could keep interest rates at 23-year high for longer than previously expected, affecting Americans’ borrowing costs on everything from car loans to mortgages.
The Fed in January opted to hold rates steady for the fourth consecutive meeting and officials acknowledged that inflation has slowed considerably from its four-decade peak in the summer of 2022. But Fed Chair Jerome Powell pushed back on the market’s expectation that the first rate cut could come in the spring, saying that it’s way too soon to declare victory.
Stocks ended lower last week, breaking a five-week streak of gains as hot inflation gauges raised fears among investors that the central bank may cut rates later and less aggressively than previously expected.
This story is developing and will be updated.
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