Fed policymakers take on a cautious language on policy outlook. Key takeaways Businesses are confident in underlying strength of the economy; next year or two should see continued solid performance. The efficacyof monetary policy may be weaker than in the past, but that doesn't mean it is having no impact at all. The Fed's highest priority is to get inflation back to 2%. Expecting inflation to decline but relatively slowly,would not expect a rate cut before the fourth quarter.
The upcomingframework review will be robust,given the number of open questions about the economy and policy. Though businesses are confident about the economy, they don't feel they have the same pricing power as even 6 months ago. Fed has to be cautious about the first rate move, may need to be later in order to not stoke pent-up exuberancefor investment, other spending. Would rather wait longer for a rate cut to be sure inflation does not start to bounce around.