• Federal Reserve policymakers agreed last month that it would be appropriate to maintain a rstrictive stance “for some time,” while acknowledging they were probably at the peak rate and would begin cutting in 2024.
• “Participants viewed the policy rate as likely at or near its peak for this tightening cycle,” according to the minutes of the Dec. 12-13 Federal Open Market Committee meeting released Wednesday.
• That said, officials “reaffirmed that it would be appropriate for policy to remain at a restrictive stance for some time until inflation was clearly moving down sustainably.” The minutes indicated increased optimism among participants about the path of inflation, noting “clear progress.”
• The committee expressed a willingness to cut the benchmark lending rate in 2024 should that trend continue, though they gave no indication easing could begin as soon as March, as futures traders expect.