The Fed kept interest rates unchanged in December and said that there may be three potential cuts in 2024. However, they hinted that the easing may happen later than the markets expect, as for the time being they do not see an urgent need to loosen monetary policy.

Almost all members voted that it would be prudent to have a lower target range by the end of 2024. Meanwhile, some noted that under current circumstances, maintaining the target range at its current value will last longer than expected. They emphasized the importance of maintaining a cautious approach in the field of monetary policy.

Although the minutes showed that risks declined. the Fed remains vigilant over inflation because it still exceeds the long-term goal of the committee. Price stability could still stall.

The minutes also highlighted growing concerns about the economy, as the central bank maintains a restrictive monetary policy.

As seen in the December ISM data, manufacturing activity in the US has decreased.