Federal Reserve officials signaled little appetite for reducing interest rates at their meeting last month, with most indicating they wanted to see further progress on inflation before considering any further cuts—a process that could take months.

Fed policymakers were in near-unanimous agreement to keep interest rates on hold at their meeting last month, but remained split over their next steps. The full table grappled with the emerging implications of AI for the economy.

Key Takeaways Federal Reserve officials signaled that additional rate cuts are still possible this year, but January’s meeting minutes revealed growing concern about easing policy while inflation remains above 2%.

Many Federal Reserve officials want to see inflation fall further before they would support additional interest rate cuts this year, particularly if the job market continues to stabilize, minutes of last month’s meeting show.