In an unusual turn, the central bank’s board debated over monetary policy before the latest quarter-point cut
In an unusual turn, the central bank’s board debated over monetary policy before the latest quarter-point cut
The US Federal Reserve agreed to cut interest rates at its December meeting only after a deeply nuanced debate about the risks facing the US economy right now, according to minutes of the latest two-day session.
Even some of those who supported the rate cut acknowledged “the decision was finely balanced or that they could have supported keeping the target range unchanged”, given the different risks facing the US economy, according to the minutes released on Tuesday.
In economic projections released after the 9-10 December meeting, six officials outright opposed a cut and two of that group dissented as voting members of the Federal Open Market Committee.
“Most participants” ultimately supported a cut, with “some” arguing that it was an appropriate forward-looking strategy “that would help stabilize the labor market” after a recent slowdown in job creation.
