Fed Minutes Signal Caution on Rate Cuts Amid Stable Job Market

Many officials want to see further inflation decline before supporting additional rate reductions

Published on Feb. 23, 2026

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According to the minutes of the Federal Reserve's latest policy meeting, many central bank officials want to see inflation fall further before they would support additional interest rate cuts this year, particularly if the job market continues to stabilize. The minutes showed a deeply divided committee, with some officials favoring a pause in rate changes and others open to potential hikes if inflation remains above the Fed's 2% target.

Why it matters

The Fed's policy decisions on interest rates have significant implications for the broader economy, impacting borrowing costs for consumers and businesses. The central bank's cautious stance on further rate cuts signals concerns about the pace of economic growth and inflation, which could shape the trajectory of the economy in the coming months.

The details

The 'vast majority' of the 19 participants on the Fed's rate-setting committee said there were signs the job market has stabilized, after the unemployment rate rose in late 2025. Most officials agreed the Fed's key rate is close to a level that neither stimulates nor restrains the economy. Several officials said additional cuts will 'likely be appropriate' if inflation continues to decline, while 'some' favored keeping rates unchanged 'for some time.' Several others said they could have supported language signaling the next move could be either a cut or a hike.

  • The Fed's January 27-28 meeting is when the discussed policy decisions were made.
  • The minutes were released on February 19, 2026, three weeks after the central bank's meeting.

The players

Federal Reserve

The central banking system of the United States that sets monetary policy, including decisions on interest rates.

Stephen Miran

A Fed governor who voted to cut the key interest rate by another quarter-point at the January meeting.

Christopher Waller

A Fed governor who also voted to cut the key interest rate by another quarter-point at the January meeting.

Jerome Powell

The Chair of the Federal Reserve who signaled after the January meeting that the Fed could wait a few months before cutting rates again.

Michael Barr

A Fed governor who pointed to the strong January jobs report as evidence the labor market is 'stabilizing,' while inflation remains above the Fed's 2% target.

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What they’re saying

“Based on current conditions and the data in hand, it will likely be appropriate to hold rates steady for some time.”

— Michael Barr, Fed Governor (CNBC)

“The Fed could reduce rates 'several more' times this year, if there is evidence that inflation was moving closer to 2%.”

— Austan Goolsbee, President of the Federal Reserve Bank of Chicago (CNBC)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.