Many Fed officials favored no rate cut in December, minutes show

A significant number of US Federal Reserve officials leaned toward keeping interest rates unchanged in December, according to minutes released Wednesday from the central bank’s most recent policy meeting.

The discussion reflected growing uncertainty about the economic outlook, with policymakers noting risks to the labor market and the possibility that inflation could prove more persistent than anticipated.

“Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year,” the minutes from the October 28–29 meeting stated.

During that meeting, the Fed approved a second consecutive rate cut for the year, lowering the benchmark lending rate to a range of 3.75 to 4.0 percent.

However, Fed Chair Jerome Powell cautioned after announcing the decision that another rate cut in December was “not a foregone conclusion.”

The minutes indicated that officials were divided heading into the next meeting, noting that participants held “strongly differing views about what policy decision would most likely be appropriate” for December.

While most officials agreed that additional rate cuts would likely be needed over time, several said they did not consider a further 25 basis-point reduction to be the right step for the upcoming meeting.