FOMC members are concerned about high inflation persistence

FOMC minutes revealed that its members expressed concerns that inflation may continue rising, though they are still expecting rate cut at some point this years.

The minutes said “inflation was not fast enough on its way down” despite some recent decline. But the participants were keen on keeping the language of Fed’s official statement unchanged in March stating that the central bank wants to have “greater confidence” that inflation is on a the right track to the official target of 2.00%.

They added: “Participants also expressed a sense of uncertainty regarding persistence of high inflation,  suggesting that recent data had not increased their confidence that inflation is moving sustainably down towards”.

During discussions about the future path of U.S. inflation, committee members believed that ongoing tensions in the Middle East and higher oil prices could lead to further increases in the inflation.