Fed meeting notes risks of cutting rates too late or too soon

Some participants stressed that reducing policy restrictions too late or too little could risk unduly weakening economic activity and employment. Some participants highlighted the costs and challenges of addressing the weakening once it had fully begun. However, several participants said that reducing policy restrictions too early or too much could cause progress in the fight against inflation to stall or reverse. Some participants noted that uncertainty about the level of the long-term neutral interest rate complicated the assessment of the extent of policy restrictions, and they argued that gradual reductions in policy restrictions were appropriate.