#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 interest rate cuts and remaining vigilant about inflation risks. The minutes indicate that the Fed believes interest rates are approaching 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 primarily based on the following reasons: First, inflation risks remain elevated. While inflation is expected to continue to move toward 2%, recent higher-than-expected inflation data, as well as the potential impact of trade and immigration policy changes, suggest that this process may take longer than previously anticipated. Second, too rapid a pace of rate cuts 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. In addition, Nick Timiraos, the Fed's "voice," pointed out that the minutes further indicate that officials are generally willing to keep interest rates unchanged at the meeting scheduled for the end of this month. Overall, the Fed's latest statement indicates that it will continue to closely monitor economic data and adjust monetary policy as needed to achieve a balance between inflation control and economic growth.