Minutes from the Federal Reserve’s June meeting show that most policymakers expect to lower interest rates twice before the end of 2026, as inflation continues to ease and job market conditions soften.

The discussion points to a central bank that sees less pressure to keep borrowing costs elevated for longer. Officials said recent data have shown progress on inflation, while also noting signs that the labor market is losing some momentum.

Still, the minutes suggest the Fed is not moving on autopilot. Policymakers continue to weigh how quickly inflation is falling against the risk that cutting rates too soon could slow the progress they have made.

Markets will now look for more economic data and comments from Fed officials for clues on whether the expected cuts will arrive in the second half of the year.