#The Fed slows the pace of rate cuts.#

The minutes of the Federal Reserve's recent December monetary policy meeting show that officials are leaning toward slowing the pace of interest rate cuts, believing that rates are near or at a level where it is appropriate to do so. The minutes note that inflation risks remain elevated, and officials need to adjust monetary policy cautiously to avoid the negative consequences of overly aggressive policy adjustments, such as a faster pace of rate cuts potentially leading to renewed inflationary pressures. While inflation is expected to continue to move toward 2%, recent higher-than-expected inflation data and the potential impact of trade and immigration policy changes suggest that this process may take longer than previously anticipated. Some participants noted that the disinflationary process may have stalled temporarily, or pointed to potential risks. As a result, the Fed may continue to cut rates at a slower pace than in recent months and hold rates steady at its upcoming meeting at the end of this month.