Most U.S. Federal Reserve policymakers view further interest rate cuts as appropriate if inflation cools over time, minutes of their latest gathering showed.
But some officials also suggested that it would probably be appropriate to keep rates "unchanged for some time" after the latest reduction in December.
Officials voted 9-3 to lower rates by a quarter percentage point this month, bringing levels to a range between 3.5 percent and 3.75 percent.
But a few who supported this third consecutive cut indicated that their decision was "finely balanced" or that they could have instead backed keeping rates unchanged.
The Fed's meeting minutes highlight the tightrope that officials walk as they balance the need to shore up a weakening labor market against risks of inflation becoming entrenched.
Policymakers have been split over the pace of rate cuts, with lower rates serving to boost the economy while higher levels are aimed at tamping down inflation as President Donald Trump's tariffs bite.
While officials also penciled in one more cut in 2026, Fed Chair Jerome Powell hinted that the central bank could hold off on doing so in the coming months.
For now, the Fed's minutes showed that officials expect inflation to be "somewhat elevated in the near term" before moving gradually to their 2 percent target.
