Officials discussed the balance between maintaining restrictive measures and transitioning to a more neutral stance, depending on economic conditions. Several members noted that keeping interest rates at restrictive levels could be necessary if inflation remains persistent. Others suggested that if the labor market weakens or economic activity falters, easing policies might accelerate.<\/p>\n
A recurring theme was uncertainty about the \u201cneutral\u201d interest rate, prompting many officials to support a gradual reduction in the restrictiveness of monetary policy. Some participants even observed that risks to the labor market and overall economy appear to have diminished.<\/p>\n
Public comments since the meeting indicate a divide among Fed officials. Some believe the economy is nearing a neutral policy stance, signaling an end to further rate reductions. Others see the potential need for a longer period of cuts.<\/p>\n