US EditionFed minutes show divide over October rate cut and cast doubt about December
Fed officials split on whether to cut rates in December due to conflicting views on inflation persistence and labor market softness, with a 10-2 vote for a recent 0.25% cut.
- After the October meeting, the Federal Reserve's minutes showed the FOMC approved a quarter-percentage-point cut to a 3.75%-4% range with a 10-2 vote but revealed division over the Dec. 9-10 meeting.
- Fed officials split over economic threats: they debated whether a weakening labor market or persistently elevated inflation posed the greater risk, amid missing data from the 44-day government shutdown.
- Within the committee, notable dissent surfaced as the minutes reflected multiple camps with several participants seeing a December cut as appropriate while many ruled it out, investors pared bets to less than a one-in-three chance, Stephen Miran favored a half-point cut, and Jeffrey Schmid opposed cuts.
- The FOMC also halted balance-sheet runoff by agreeing to stop reductions in December, leaving over $2.5 trillion in assets, which affects borrowing costs for borrowers.
- Looking beyond December, many participants still see further cuts likely in coming months, with market odds for a January cut around 66%, though Jerome Powell said a December cut is not a 'foregone conclusion'.
116 Articles
116 Articles
Federal reserve officials sharply split over rate cut amid economic uncertainty
What was once seen as a near-certain cut in interest rates next month now looks more like a coin flip as Federal Reserve officials sharply disagree over the economy’s health and whether stubborn inflation or weak hiring represent a bigger threat.
December interest rate cut in doubt as Fed minutes show policymakers divided
The minutes of the Federal Reserve's policy meeting last month show that the path for interest rate cuts in December and early next year is far from certain.Policymakers on the Federal Open Market Committee (FOMC) were divided at their late October meeting over whether there should be an additional rate cut at their next meeting in mid-December amid concerns about a softening labor market and rising inflation.The Fed cut rates for the first time…
Many Fed officials are inclined not to make a further cut in rates in December, as can be seen from the minutes of today's meeting: a move that would certainly anger the...
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- 58% of the sources are Center
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