The Federal Reserve’s December 2023 meeting minutes, released on Wednesday and reported by the Wall Street Journal, indicate a general consensus that the central bank will not be raising interest rates any further. However, there was little discussion or agreement on when the Fed might start lowering rates.
Some members of the Federal Open Market Committee expressed concern about keeping rates too high for an extended period of time. They emphasized “the potential negative impact on the economy from maintaining a restrictive stance,” according to the minutes.
On the other hand, some members believed that it may be necessary to maintain current interest rate levels for longer than originally anticipated if inflation remains above their target of 2%. Richmond Fed President Tom Barkin stated in a speech on Wednesday that this could potentially lead to a soft landing but is not guaranteed.
Barkin also noted in his speech that while lower interest rates in 2024 are likely, no specific timeline has been established at this point. This update from The Federal Reserve was shared without mention of Connect CRE or its regional branches such as Connect LA and Connect Texas.
