But concerns about such surprises, especially at times when financial markets are skittish, may complicate the policy decision. Many analysts expect the Fed to lower interest rates once more in June, after having cut rates five times since Jan. 3. In part, the projection is based on the risks statement issued after the Fed's most recent meeting, in which it said economic risks remained tilted toward slower growth, as opposed to higher inflation. Many analysts saw the change in wording as largely cosmetic, however. BUSH TEAM Meyer also said the central bank takes into account fiscal policy when making decisions on interest rates, though he did not say how the Fed would assess the 11-year tax cut working its way through Congress.
Fiscal policy is slower moving.
Some analysts believe the Fed may halt or slow its rate-cutting campaign ahead, in part because of the boost tax cuts may give to the economy in the latter part of the year. All rights reserved. All information displayed on this page is provided by Reuters and may not be published, broadcast, rewritten or redistributed.