US Federal Reserve may tweak key 'reverse repo' rate

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Williams, who is vice-chairman and a permanent voting member of the Fed's rate-setting committee, also said some risks to global growth have receded and domestic drivers of the US economy are strong, likely putting growth above 2% and its long-run potential this year.

At that point, with US growth continuing, inflation "muted", and some global risks appearing to have eased, "members observed that a patient approach.would likely remain appropriate for some time.even if global economic and financial conditions continued to improve".

'Other sources of uncertainty remained.

New York Fed President John Williams said at a press briefing that there is not now a strong argument for changing rates, including as a response to low inflation readings that may due to temporary factors.

John Williams, president of the New York Federal Reserve Bank, said he would support a rate cut "down the road" if appropriate to get inflation back to target but "I don't think we're at that point or will be in the very near future".

Earlier Kaplan also said USA bond markets are "flirting" with a yield curve inversion that could signal slower economic growth ahead.

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"A policy rate move of this sort may become a more attractive option if inflation data continue to disappoint". By controlling short-term rates, the Fed hopes to influence the broader economy to maximize employment and keep inflation at its target. Mark Hamrick, an economic analyst, said that investors shouldn't expect the Fed to listen to Trump.

Earlier on Wednesday, New York Fed President John Williams said at a press briefing that there is not now a strong argument for changing rates.

Both a tight labor market and concern among businesses about their profit margins should boost inflation as the year unfolds, San Francisco Fed President Mary Daly said on Thursday.

Many FOMC members saw the early-2019 dip in inflation readings as "transitory".

Consistent with Fed Chair Jerome Powell's press conference after the meeting, participants observed "at least part of the recent softness in inflation could be attributed to idiosyncratic factors". The outlook for the U.S. economy will have to take a nasty turn before the Powell Fed cuts interest rates or halts quantitative tightening altogether.