"Federal Reserve Minutes Reveal Concerns Over Premature Interest Rate Cuts"

The minutes of the Federal Reserve's Jan. 30-31 meeting revealed that most policymakers were concerned about the risks of cutting interest rates too soon, emphasizing the uncertainty surrounding the duration of the current monetary policy stance and the need for "greater confidence" in falling inflation before considering rate cuts. Fed Chair Jerome Powell essentially ruled out a rate cut at the March meeting, and the minutes highlighted the potential risks to the economy associated with maintaining an overly restrictive stance for too long. The Fed also noted upcoming discussions on balance sheet policy at the March meeting and highlighted various risks to the U.S. financial system.