US EditionFed minutes show divide over October rate cut and cast doubt about December
Fed officials were divided on a December rate cut due to concerns over a slowing labor market versus persistent inflation, with the Fed halting $2.5 trillion in balance-sheet reductions.
- Wednesday, the Federal Open Market Committee released minutes showing it approved a quarter percentage point reduction in the overnight borrowing rate to a range of 3.75%-4%.
- Internal divisions reflected multiple camps within the FOMC, including a 10-2 vote that understates dissent over whether a stalling labor market or inflation poses the larger threat, centering on policy described as `restrictive`.
- Moderates such as Powell, Jefferson, and Williams favored a patient approach, while Jeffrey Schmmid, Susan Collins, and Alberto Musalem warned against further easing, and Miran preferred a more aggressive half-point cut.
- Markets reacted as traders who had priced a near-certainty of a Dec. 9-10 move saw odds fall to less than a 1 in 3 chance Wednesday, while the Federal Open Market Committee agreed to stop reducing Treasury and mortgage-backed securities after trimming more than $2.5 trillion.
- Decision-Making was complicated by missing government data during a 44-day government shutdown, while many participants suggested keeping the target range for the federal funds rate unchanged for the rest of the year.
35 Articles
35 Articles
Fed officials ‘expressed strongly differing views’ on December rate cut, meeting minutes show
A majority of Federal Reserve policymakers expressed support in late October for further interest rate cuts, though not all committed to making the reduction at their next meeting in December.
The Federal Reserve drives a car in the middle of the fog while the children fight in the back seat. It is the image that results from the reading of the minutes of the last meeting of the agency charged with deciding on the direction of monetary policy. The reviews note the deep division within the institution. During that meeting, the Fed lowered interest rates a quarter point for a second consecutive time. At the subsequent press conference, …
Fed minutes: Most officials supported more rate cuts but not necessarily in December
Fed minutes: Most officials supported more rate cuts but not necessarily in December A majority of Federal Reserve policymakers expressed support in late October for further interest rate cuts, though not all committed to making the reduction at their next meeting in December, according to minutes released Wednesday.At the same time, many officials said “it would likely be appropriate” to keep rates “unchanged for the rest of the year,'' a sign …
Fed minutes: Most officials supported more rate cuts but not necessarily in December
By CHRISTOPHER RUGABER, Associated Press WASHINGTON (AP) — A majority of Federal Reserve policymakers expressed support in late October for further interest rate cuts, though not all committed to making the reduction at their next meeting in December, according to minutes released Wednesday. At the same time, many officials said “it would likely be appropriate” to keep rates “unchanged for the rest of the year,” a sign of strong divisions among …
Fed minutes: Most officials supported more rate cuts but not necessarily in December
By CHRISTOPHER RUGABER, Associated Press WASHINGTON (AP) — A majority of Federal Reserve policymakers expressed support in late October for further interest rate cuts, though not all committed to making the reduction at their next meeting in December, according to minutes released Wednesday. At the same time, many officials said “it would likely be appropriate” to keep rates “unchanged for the rest of the year,” a sign of strong divisions among …
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