US Fed’s patient monetary policy to remain ‘for some time’

This article is more than 12 months old

May 24, 2019 06:00 am

WASHINGTON US Federal Reserve officials at their last meeting agreed that their current patient approach to setting monetary policy could remain in place "for some time", a further sign policymakers see little need to change rates in either direction.

"Members observed that a patient approach... would likely remain appropriate for some time", with no need to raise or lower the target interest rate from its current level of between 2.25 and 2.5 per cent, the Fed reported on Wednesday in the minutes of the central bank's meeting from April 30 to May 1.

Recent weak inflation was viewed by "many participants... as likely to be transitory" while risks to financial markets and the global economy had appeared to ease - a judgment rendered before the Trump administration imposed higher tariffs on Chinese goods which heightened trade tensions.

Analysts saw little new in the minutes regarding Fed policy, though some noted that policymakers' views may have changed in the intervening weeks since Mr Trump took a harder trade line with China.

- REUTERS