Fed Last Month Saw Rising Risks to Job Market, but Remained Wary on Inflation - BusinessWorld Online
Fed officials are split on inflation risks and labor market weakness, with most backing further rate cuts this year and inflation remaining above the 2% target, minutes show.
- On Wednesday, the FOMC minutes showed most participants judged it likely appropriate to ease policy this year, while a majority emphasized upside risks to inflation.
- After new labor data showed weakness, Federal Reserve officials cited a Bureau of Labor Statistics payroll revision of more than 900,000 jobs lower, raising downside risks to employment and prompting easing talks.
- The new governor, Stephen Miran, argued in the minutes that he dissented in favor of a 50 bps cut at the September meeting, citing heterodox views on the neutral rate.
- Markets reacted with Bitcoin briefly above $124,000, and CME FedWatch currently prices a 92.5% chance of a 25-bps cut at the October 29 meeting.
- Based on median projections, Fed officials expect two additional 25-basis-point cuts this year as Fed staff projections through 2028 show higher GDP growth and inflation reaching the 2% target by 2027.
27 Articles
27 Articles
Fed Minutes: Most Officials Supported Further Rate Cuts As Worries About Jobs Rose
WASHINGTON (AP) — Most members of the Federal Reserve’s interest-rate setting committee supported further reductions to its key interest rate this year, according to minutes from last month’s meeting released Wednesday. A majority of Fed officials felt that the risk unemployment would rise had worsened since their previous meeting in July, while the risk of rising inflation “had either diminished or not increased,” the minutes said. As a result,…
Fed last month saw rising risks to job market, but remained wary on inflation - BusinessWorld Online
WASHINGTON – Federal Reserve officials agreed at their recent policy meeting that risks to the US job market had increased enough to warrant an interest rate cut, but remained wary of high inflation amid a debate about how much borrowing costs were weighing on the economy, minutes of the September 16-17 session showed on Wednesday. “Most participants observed that it was appropriate to move the target range for the federal funds rate toward a mo…
Fed minutes show policymakers remain concerned about inflation as they weigh rate cuts
The Federal Reserve on Wednesday released the minutes from the central bank's monetary policy meeting last month, which showed that while policymakers anticipate further interest rate cuts, they remain committed to bringing inflation back to its 2% target.The Federal Open Market Committee (FOMC), which guides the Fed's monetary policy moves, voted in September to lower the benchmark federal funds rate by 25 basis points to a range of 4% to 4.25%…
Coverage Details
Bias Distribution
- 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium