🔴 The minutes of the U.S. Federal Reserve meeting, released on Wednesday, November 19, show a divergence among its officials during their October meeting regarding interest rate cuts, as they were divided on whether a recession in the labor market or persistent inflation posed a greater economic threat.
📌 The disagreements extended to December's forecasts, with officials expressing skepticism about the need for additional cuts that markets widely expected, with "many" stating that no further cuts were necessary at least in 2025.
📌 The minutes added: "Many participants confirmed that a reduction in the target range for the federal funds rate could be appropriate in December if the economy develops according to their expectations during the period between meetings."
📌 However, it also noted: "Many participants indicated that, under their economic forecasts, it is likely appropriate to keep the target range unchanged for the rest of the year."
📌 In Federal Reserve language, "many" is more than "some," indicating a tendency against cutting rates in December. However, "participants" does not refer to voters; there are 19 participants in the meeting, but only 12 have voting rights, so it is unclear how the voting members' stance on the December decision will be determined.
