The U.S. banking system’s $3.3 trillion cash raises concerns over inflation. Read why policies may lead to new inflationary pressures despite Fed efforts.

It’s a huge frustration for all the folks that were excited to jump in and buy homes, once the Feds started cutting interest rates,” said Lara Rhame, chief economist at FS Investments.

Federal Reserve officials discussed potentially slowing down or pausing interest-rate cuts if progress on lowering inflation stalled out when they met earlier this month. Officials thought that if the economy performed in line with their expectations that inflation would continue to decline steadily,

The Federal Reserve cut its policy rate by 25 basis points, following a 50-bp rate cut in September, according to the FOMC meeting minutes.

US Federal Reserve officials agreed on the need to continue cutting interest rates, but only at a gradual level owing to the volatility in economic data, minutes released from the November meeting showed on Tuesday.