US Fed officials signal interest rates likely on hold for a while

'Considerable uncertainty' over economic outlook merits slower approach, they say

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Several Federal Reserve officials confirmed the US central bank will likely hold interest rates at current levels for an extended period, only cutting again when inflation meaningfully cools.

Boston Fed president Susan Collins said on Jan 9 that a slower approach to adjusting interest rates is merited now as officials confront "considerable uncertainty" over the US economic outlook. The view was echoed by colleagues from other reserve banks and by Governor Michelle Bowman.

The Fed's "policy is well positioned to adjust as required to evolving conditions - holding at the current level for longer if there is little further progress on inflation", Ms Collins said at an event in Boston.

The Fed's favoured inflation gauge rose 2.4 per cent in the year through November, and 2.8 per cent minus food and energy, each above the central bank's 2 per cent target.