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Dow Jones NewsNov 19, 7:06 PM UTC
MW Fed minutes show 'strongly differing views' over whether to cut interest rates again in December
By Greg Robb
Several Fed officials argued that progress on bringing inflation lower had "stalled."
During his October press conference, Federal Reserve Chair Jerome Powell said a rate cut in December was not a "foregone conclusion."
Federal Reserve officials held "strongly differing views" about whether to cut interest rates in December, with rising sentiment among officials that progress on inflation had stalled, according to a summary of the meeting released Wednesday.
Many Fed officials were clear that they wanted the Fed to hold rates steady in December.
These officials said further rate cuts could add to the risk of higher inflation becoming sticky and would be misinterpreted as implying a lack of the Fed's commitment to its 2% inflation target.
At the same time, "most" officials suggested that rates would likely move lower over time, but "several" of these officials said they did not necessarily think a December cut was appropriate. Some of these officials said they would wait for the data to decide whether to cut, according to minutes of the meeting.
Officials in the rate-cut camp viewed cuts as guarding against the possibility of a sharp rise in the unemployment rate.
At the October meeting, the Fed voted 10 to 2 to cut rates by 25 basis points, the second easing in a row.
Stephen Miran, the new Trump appointee, dissented in favor of a larger cut, while Kansas City Fed President Jeff Schmid voted to hold rates steady. It was the first two-sided dissent since September 2019.
According to the minutes, several Fed officials did not support the October rate cut. They argued that progress on bringing inflation lower had "stalled."
Fed officials generally judged that the uncertainty about the outlook was elevated. They expressed concern about their ability to assess economic conditions because of the prolonged government shutdown.
The Fed will meet again to decide interest-rate policy on Dec. 9-10.
-Greg Robb
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11-19-25 1406ET
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