US Federal Reserve officials expressed their reluctance to lower interest rates in the near future, citing concerns about mounting inflation rates surpassing the target range. According to a report by the National Bank of Kuwait, committee members remain worried about persistent inflation or its elevated levels, prompting the need for additional measures to address the situation, reported Al-Qabas Daily.
The meeting minutes revealed that committee members stressed the importance of cautious action and the necessity of basing decisions on comprehensive data, considering their impact on economic expectations and risk assessment.
Notably, the minutes did not mention discussions about the possibility of reducing interest rates, aligning with Chairman Jerome Powell’s post-meeting press conference statement that the committee is not considering a rate cut at present. Meanwhile, consumer confidence in the US experienced its fourth consecutive monthly decline.
The US Consumer Confidence Index dropped to 61.3 points in November from 63.8 points in October. This decline suggests that despite recent declines, consumers still anticipate increased inflation rates in the coming months, with expectations reaching around 4.5% over the next 12 months and 3.2% over the next five years.
