Fed minutes show officials were in tight split over December rate cut
The Federal Reserve on Tuesday released minutes from its December meeting.
TL;DR
- FOMC approved a quarter-point rate cut with a 9-3 vote, the most dissents since 2019.
- Debate focused on supporting the labor market versus concerns over inflation.
- Most participants indicated further cuts would be appropriate if inflation declined as expected.
- Some officials suggested keeping rates unchanged for some time after the cut.
- The committee voted to resume its bond-buying program to calm short-term funding markets.
- Four new regional presidents with differing views on rate cuts will rotate into voting roles.