Federal Reserve officials acknowledged at their most recent meeting in January that there had been “significant progress” in reducing inflation. But some of the policymakers expressed concern that strong growth in spending and hiring could disrupt that progress. In minutes from the January 30-31 meeting, most Fed officials also said they were worried about moving too fast to cut their benchmark interest rate before it was clear that inflation was sustainably returning to their 2% target. Only “a couple” were worried about the opposite risk — that the Fed might keep rates too high for too long and cause the economy to slow more than necessary, or even slip into a recession.
