Fed officials were divided on whether to cut rates by half a point in September, minutes show

Published On Oct 9, 2024, 2:00 PM

The Federal Reserve's recent meeting minutes reveal a split among officials regarding the extent of interest rate cuts. Some preferred a modest quarter-point reduction, expressing concerns about inflation sustainability and the labor market, while a majority backed a more aggressive half-point cut, marking the first such move in over four years. This reflects mixed sentiments about the economy, with strong job growth indicators suggesting the labor market is resilient. The Fed is in the early stages of easing, but future adjustments may be less aggressive than the recent cut. Markets expect the federal funds rate to stabilize between 3.25% and 3.5% by the end of 2025, indicating cautious optimism.