Federal Reserve officials said on Tuesday that they have no interest in changing the central bank’s interest rate policy in the near future.

Markets expect the Federal Reserve to cut interest rates again this year, but given the uncertainty surrounding a stabilizing job market and whether inflationary pressures will fall back to target levels, officials have not offered much guidance on the prospect of further reducing short-term borrowing costs.



" I think it's probably appropriate to maintain the current range for a while ," Boston Fed President Collins said during a panel discussion at a technology conference hosted by the bank. But she added, "Different scenarios are possible, so it's important to continue to take a really patient and thoughtful approach to decision-making."

Richmond Fed President Barkin, who is also a member of the group, said monetary policy is in "good shape" and can handle risks to the economic outlook.

Both officials stated that while they have seen signs of a stabilizing labor market, they are still looking for evidence that inflation will slow further. The labor market is in an environment of low hiring and low layoffs, and inflation has remained stable above the central bank's 2% target.

Both pointed out that the U.S. Supreme Court recently declared most of President Trump's trade tariffs invalid, and the president's response of imposing more tariffs is unlikely to have a significant impact on the economy.

Collins also stated that the current monetary policy setting is somewhat restrictive or close to neutral. Last year, the Federal Reserve lowered its target interest rate by 0.75 percentage points to a range of 3.5% to 3.75%, and kept the rate unchanged at the Federal Open Market Committee (FOMC) meeting at the end of January.

Collins stated that, in order to justify another rate cut, "I would like to be more confident in seeing the process of easing inflationary pressures resume." She added, "Later this year, we may see" a cooling of inflationary pressures.

Chicago Fed President Goolsby also said on Tuesday that it would be inappropriate to cut interest rates until there is more evidence that inflation is declining.

Recent indicators show that inflation is well below its peak but still above the Federal Reserve's 2% target. Goolsby points out that policymakers have "hurt themselves by assuming short-lived inflation" in the past and should not repeat the same mistake.

"I think it would be unwise to cut rates too early in this situation," he said at the National Association for Business Economics' annual conference in Washington. "People are saying that prices are one of their most pressing concerns, and that's something to keep in mind. Let's make sure inflation is back to 2% before we cut rates further to stimulate the economy."

The latest inflation data for December showed that core inflation, measured by the Federal Reserve's main forecasting indicator, the CPI, excluding volatile food and energy prices, was 3%. This is 0.2 percentage points higher than in November, partly due to tariffs that are considered temporary, but also due to potential pressure from the service sector and areas not directly affected by tariffs.

Specifically, Goolsby stated that the persistently high housing price inflation is not driven by tariffs, and he emphasized that the Federal Reserve needs to be "vigilant."

Goolsby pointed out that a 3% inflation rate is "not good enough." "Stagnation at 3% is not a safe place for countless reasons we know very well," he said. He had previously stated that he believed the Federal Reserve would be able to cut interest rates later this year.