US EditionSharp disagreements over economy threaten Federal Reserve interest rate cut
Federal Reserve officials are split on whether to cut rates in December, with market odds now at 50-50 amid conflicting inflation and hiring data.
- Federal Reserve officials disagree over whether high inflation or weak hiring poses a bigger threat, putting a December interest rate cut in doubt.
- Some policymakers are concerned about persistent inflation, echoing 'affordability' issues from the recent elections.
- Others prioritize meager hiring and the threat of increased layoffs in a 'low-hire, low-fire' job market, calling for a rate cut.
44 Articles
44 Articles
By CHRISTOPHER RUGABER WASHINGTON (AP) — A majority of those responsible for Federal Reserve policy expressed their support at the end of October for further interest rate cuts, although not all committed to the reduction at their next meeting in December, according to the minutes published on Wednesday. At the same time, many officials said that it would be “probably appropriate” to keep rates “unchanged for the rest of the year,” indicating st…
Associated Press News
Sharp disagreements over economy threaten Federal Reserve interest rate cut
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.
The disagreement was also evident in the decision, as Stephen Miran voted to cut interest rates by 50 basis points and Jeffrey Schmidt was in favor of keeping interest rates unchanged.
A majority of those responsible for the Federal Reserve policy expressed their support at the end of October for further cuts in interest rates, although not all committed to the reduction at their next meeting in December, according to the minutes published on Wednesday.
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