Fed and interest rates
Federal Reserve Chair Jerome Powell testifies before the Senate Banking Committee. Chip Somodevilla/Getty Images

Newly released minutes from last month's Federal Reserve Open Market Committee meeting show that members are concerned about inflation risks and support pausing interest rate cuts.

Members noted that inflation remained somewhat elevated and progress toward its 2% goal had slowed over the past year.

A few members noted that the current target range for the federal funds rate may not be far above its neutral level.

They also expressed concern that President Donald Trump's tariffs could push up inflation a little further.

The minutes stated that "with the stance of policy significantly less restrictive than it had been before the Committee's policy easing over its previous three meetings, all participants viewed it as appropriate to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. Participants judged that it was appropriate to continue the process of reducing the Federal Reserve's securities holdings."

Recent economic data supports concerns over inflation. The Producer Price Index shot up more than expected in January.

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