FOMC Minutes Show Divided Fed, And Cast Doubt On December Interest Rate Cut

Core Insights - A Federal Reserve rate cut in December is becoming less likely due to sharp divisions among committee members regarding future monetary policy [2][3][7] - The minutes from the recent policy committee meeting indicate that while some members support further rate cuts, many are inclined to maintain current rates to combat persistent inflation [5][4] Summary by Sections Federal Reserve's Decision-Making - The Federal Open Market Committee (FOMC) is facing a dilemma between lowering interest rates to support job growth and keeping them high to control inflation [2][7] - The chances of a rate cut in December have decreased from 50% to approximately 33% following the release of the meeting minutes [3][7] Economic Context - High inflation has persisted for five consecutive years, exceeding the Fed's target of a 2% annual rate, complicating the decision-making process [5][4] - The recent 43-day federal government shutdown has delayed key economic reports, further limiting the data available for FOMC members to consider [8][9] Member Opinions - Only one out of twelve FOMC members voted against lowering the fed funds rate, indicating a divided stance among members [5][9] - The minutes reveal that many members are becoming increasingly reluctant to cut rates due to ongoing inflation concerns [5][4]