WASHINGTON (dpa-AFX) - Federal Reserve officials believe it will be appropriate to 'gradually' lower interest rates, according to the minutes of the central bank's latest monetary policy meeting.
The minutes said officials feel a gradual approach to lowering rates to a more neutral stance will be appropriate if economic data come in 'about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment.'
However, the minutes noted officials judged that the risks to achieving the Fed's employment and inflation goals were roughly in balance.
Members viewed the economic outlook as uncertain and agreed that they were attentive to the risks to both sides of the Fed's dual mandate of maximum employment and inflation at the rate of 2 percent over the longer run, the minutes said.
The Fed said participants subsequently noted that monetary policy decisions were not on a 'preset course and were conditional on the evolution of the economy and the implications for the economic outlook and the balance of risks.'
Following the November 6-7 meeting, the Fed announced its decision to lower interest rates by 25 basis points after slashing rates by 50 basis points in September.
The Fed's next monetary policy meeting is scheduled for December 17-18, with CME Group's FedWatch Tool suggesting some uncertainty about whether the central bank will continue lowering rates.
While the FedWatch Tool indicates a 59.6 percent chance of another 25 basis point rate cut, it suggests there is a 40.4 percent chance the Fed will leave rates unchanged.
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