Federal Reserve officials were at odds during their October meeting over cutting interest rates, divided over whether a stalling labor market or stubborn inflation were bigger economic threats, minutes released Wednesday showed.
While the Federal Open Market Committee approved a cut at the meeting, the path forward looks less creation. Disagreements stretched into the outlook for December, with officials expressing skepticism about the need for an additional cut that markets had been widely anticipating, with “many” saying that no more cuts are needed at least in 2025.
“Several participants assessed that a further lowering of the target range for the federal funds rate could well be appropriate in December if the economy evolved about as they expected over the coming intermeeting period,” the minutes stated. “Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year.”
In Fed parlance, “many” is more than “several,” indicating a tilt against a December cut. However, “participants” does not denote voters. There are 19 participants at the meeting, but only 12 vote, so it’s unclear how the voting members’ sentiment is set for a December move.
