A Federal Reserve Official Expresses Caution on Inflation Despite Agreeing to Rate Cut

BlockBeats News, October 9: Some senior Federal Reserve officials were more inclined to keep interest rates unchanged last month, highlighting policymakers' concerns that stubbornly high inflation continues to pose a threat to the U.S. economy.

Despite the 25-basis-point rate cut by the Fed in September, the minutes of the Fed meeting showed that a "few" FOMC members would have preferred to keep rates unchanged because inflation could potentially remain above target.

The minutes noted that the rise in inflation this year had caused progress toward the 2% target to "stall," and added that a few members "worried that if inflation did not promptly return to target, longer-term inflation expectations could rise."