Federal Reserve Officials Caution Against Cutting US Interest Rates Too Soon Or Too Much

WASHINGTON (AP) — Several Federal Reserve policymakers are warning against cutting U.S. interest rates too soon or by too much in the wake of recent data showing inflation stayed unexpectedly high in January.

Their comments Thursday echoed the minutes from the Fed’s last meeting in January, released Wednesday.

The minutes showed most central bank officials concerned about the risk that moving too fast to cut rates could allow inflation to rise again after it has declined significantly in the past year.

Only a couple of policymakers worried about a different risk: that keeping rates too high for too long could slow the economy and potentially trigger a recession.