#The Fed slows the pace of rate cuts.#

The minutes of the Federal Reserve's recent December monetary policy meeting show that officials are leaning toward slowing the pace of rate cuts and remaining vigilant about inflation risks. The minutes indicate that the Fed believes interest rates are near or at a level where it is appropriate to slow the pace of rate cuts, and that it may slow the pace of rate cuts in the future and enter a more cautious operating phase. This decision is based primarily on the following considerations: First, inflation risks remain elevated. While inflation is expected to continue to move toward 2%, recent higher-than-expected inflation data and the potential impact of trade and immigration policy changes suggest that this process may take longer than previously expected. Second, too rapid a rate cut could lead to renewed inflationary pressures. Therefore, Fed policymakers believe that it is necessary to carefully adjust monetary policy to avoid the negative impact of overly aggressive policy adjustments. Some participants also noted that the disinflationary process may have stalled temporarily, or pointed to potential risks. As a result, Fed mouthpiece Nick Timiraos said that officials are generally willing to keep rates unchanged at the end of this month's meeting and to cut rates at a slower pace than in recent months.