by John Carney
Breitbart.com
The End of the Cutting Cycle?
It is not just the bond market that is having doubts about the stance of monetary policy. Federal Reserve officials are also seeing the light.
After lopping off a full percentage point from rates since September, at least some officials at the Fed appear to be questioning whether further easing is warranted. Judging by recent remarks and the latest minutes from their December Federal Open Market Committee (FOMC) meeting, the answer appears to be migrating toward a firm no.
Minutes from the December meeting, released Wednesday, reveal that at least some Fed officials are increasingly worried about inflation risks. “Almost all” officials noted that upside risks to inflation had grown—an acknowledgment that the Fed may have overdone it with rate cuts in an economy still posting respectable growth. Yet despite this newfound caution, the minutes show no appetite for reversing course toward rate hikes. Instead, the message was one of careful watchfulness and, perhaps, quiet regret.