At their last meeting, the Federal Reserve left interest rates unchanged and indicated that there was no immediate need to cut interest rates, according to the FOMC minutes released on Wednesday.
The FOMC minutes for the from the May 1-2 Federal Open Market Committee meeting highlighted the reserved conversation among policymakers who believed that patience on interest rates would be appropriate for the foreseeable future.
The patient approach is still adopted by the Fed policymakers, amid concerns over the slow pace of inflation, according to the minutes.
Also, the US central bank continued to highlight the strength in the labour market, while stressed that the early-2019 retreat in inflation is seen by many members of FOMC readings as a transition period.
"Participants noted that even if global economic and financial conditions continued to improve, a patient approach would likely remain warranted, especially in an environment of continued moderate economic growth and muted inflation pressures." the minutes said.
Policymakers sounded more optimistic this month as the minutes revealed that some “participants observed that some of the risks and uncertainties that had surrounded their outlooks earlier in the year had moderated, including those related to the global economic outlook, Brexit, and trade negotiations.”
Fed Chairman Jerome Powell has lowered investors’ expectations for a rate cut, despite calls from President Donald Trump to cut rates to aid the economy in the ongoing trade war with China.