Fed Minutes Show Mixed Views on Policy Path

02:45 PM EDT, 04/08/2026 (MT Newswires) -- Federal Open Market Committee participants emphasized the need to remain "nimble" in responding to incoming data, with views still mixed on the future policy path, minutes of the March 17-18 FOMC meeting released Wednesday showed.

"With regard to the outlook for monetary policy, in light of the heightened degree of economic uncertainty, participants emphasized the importance of being nimble in adjusting the stance of policy in response to incoming data, the evolving outlook, and the balance of risks," the minutes said.

While many participants felt it would eventually be appropriate to lower interest rates, a couple said the timing of the next cut had shifted further into the future. Some participants argued the post-meeting statement should reflect the possibility that a rate increase could be needed if inflation remains above target.

"Participants agreed that uncertainty about the economic outlook remained elevated and that the conflict in the Middle East was an additional source of uncertainty," the minutes said, adding that it was too early to know how developments involving Iran might affect the US economy.

"In discussing risk-management considerations that could bear on the outlook for monetary policy, the vast majority of participants judged that upside risks to inflation and downside risks to employment were elevated, and the majority of participants noted that these risks had increased with developments in the Middle East," the minutes said. "Most participants raised the concern that a protracted conflict in the Middle East could lead to a further softening in labor market conditions, which could warrant additional rate cuts, as substantially higher oil prices could reduce households' purchasing power, tighten financial conditions, and reduce growth abroad."

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