Fed Officials Contemplate Thresholds for Rate Cuts

Federal Reserve officials are starting to talk about the conditions under which they would cut interest rates, including a scenario where inflation drifts lower even if the economic growth doesn’t falter.

Such a scenario isn’t seen as particularly likely, and a rate cut isn’t imminent or under consideration for their meeting April 30-May 1. But the thresholds for such action have been a topic of conversations in recent interviews and public remarks.

Inflation rose last year to the Fed’s 2% target after years of undershooting it. Central bank officials say...