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Fed Officials Split on Where Interest Rates Should Go, Minutes Say

Fed officials are split on whether to pause, resume cuts, or hike rates amid slow inflation progress and easing job market risks, with the policy rate held at 3.5%-3.75%.

  • Federal Reserve officials showed deep divisions about the future path of interest rates at their January meeting, with some supporting rate cuts if inflation falls and others favoring holding rates steady to assess data.
  • Several officials favored keeping the option of rate hikes open if inflation remains above target, reflecting a cautious stance.
  • The Fed held rates steady last month, though two governors dissented, preferring lower rates due to concerns about the labor market.
  • Officials noted labor market signs of stabilization but acknowledged risks of higher unemployment if labor demand falls further, while also having mixed views on inflation and tariff-related price effects.
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Associated Press NewsAssociated Press News
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Fed minutes: Lower inflation needed before many officials will support rate cuts

Many Federal Reserve officials want to see inflation fall further before they would support additional interest rate cuts this year, particularly if the job market continues to stabilize, minutes of last month’s meeting show.

·United States
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  • 74% of the sources are Center
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Reuters broke the news in United Kingdom on Wednesday, February 18, 2026.
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