In the minutes of the December FOMC meeting, the participants agreed that inflation was “unacceptably high”. They “concurred” that inflation data showed “welcome reductions in the monthly pace of price increases”, but “stressed that it would take substantially more evidence of progress to be confident that inflation was on a sustained downward path.”
Also, participants noted that risk to inflation outlook remained “tilted to the upside”, with possibility of “more persistent than anticipate” price pressures. Meanwhile, risks to economic activity outlook were “weighted to the downside”.
Participants continued to anticipate that “ongoing increases in the target range for the federal funds rate would be appropriate”. “No participant” anticipated that it’s appropriate to start lowering rates in 2023. They generally observed that a “restrictive policy stance would need to be maintained” for some time. Also, “several participants commented that historical experience cautioned against prematurely loosening monetary policy.”
