Fed says it believes inflation will continue to fall; possible rate cuts ahead

Nov. 27 (UPI) -- Despite inflation in some sectors remaining outside the Federal Reserve's benchmark of 2%, officials indicated they are pleased with the current easing of interest rates, and more gradual cuts may follow.

The officials made the comments at a regular joint meeting of the Federal Reserve Board of Governors and the Federal Open Market Committee on Nov. 6-7, according to minutes released Tuesday.

The minutes revealed that officials remained confident that inflation would continue its downward trajectory in the near future.

While they appeared open to further interest rate cuts, the Fed governors did not indicate when and by how much.

"Members concurred that inflation had made progress toward the committee's 2% inflation objective, but that inflation remained somewhat elevated," the minutes said.

They added: "In discussing the committee's statement, members agreed that it was appropriate to omit the previous reference to their greater confidence that inflation was moving sustainably toward 2%, as this language as been specifically associated with the commencement of policy easing in September and therefore was no longer needed."

The minutes said all members agreed that the committee's efforts to reach employment and inflation goals "were roughly in balance."

"Participants cited various factors likely to put continuing downward pressure on inflation, including waning business pricing power, the committee's still-restrictive monetary policy stance and well-anchored inflation expectations," the minutes said.