Fed Officials Debated Whether a Big Rate Cut Was Smart in September

Published On Oct 9, 2024, 2:07 PM

The minutes from the Federal Reserve's September meeting reveal a division among officials regarding the extent of an interest rate cut. While most backed a significant half-point cut, some preferred a smaller reduction to indicate a steady normalization path. The discussion highlights the Fed's challenge in managing inflation while fostering economic growth. Recent economic indicators suggest a less severe economic downturn, which might impact future rate cuts. Officials anticipate smaller cuts in the upcoming months rather than more drastic actions.