• Federal Reserve officials appeared increasingly convinced last month that inflation was coming under control, with diminished “upside risks” and growing concern about the damage “overly restrictive” monetary policy might do to the economy, according to the minutes from the U.S. central bank’s Dec. 12-13 meeting.
  • As a result, “almost all participants indicated that … a lower target range for the federal funds rate would be appropriate by the end of 2024,” said the minutes, which were released on Wednesday, with “a number of participants” highlighting increased uncertainty about how long strict monetary policy would need to be maintained given the progress achieved on lowering inflation.
  • In a firm nod to their progress in easing pricing pressures, policymakers also, for the first time since June 2022, did not use the phrase “unacceptably high” to describe inflation.