A divided Fed sets the stage for December
The latest Fed minutes reveal a central bank grappling with an unusually wide split over what comes next for interest rates. With inflation inching higher and the labor market showing signs of strain, policymakers are sharply divided on whether a December rate cut is the right move.
Some members believe further easing will be needed soon — especially as job growth weakens and economic data gaps emerge following the recent government shutdown. Others argue it’s too early to cut again, pointing to still-elevated inflation and resilient growth as reasons to pause.
With the December meeting approaching, the Fed must make a pivotal decision amid incomplete data and an economy sending mixed signals. One thing is clear: the path forward won’t be a foregone conclusion.
Source: https://www.ft.com/content/c5f202a7-b8c1-42ec-bc9c-db5d71748c26
