At the conclusion of its October meeting, the Federal Open Market Committee, or FOMC, cut its benchmark rate to a range of 3.75% to 4%.

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Federal Reserve members strongly disagree on rate cut in December as division deepens

The monetary policy officials of the Federal Reserve expressed 'strongly divergent' opinions on a rate cut in December, raising doubts about further easing this year.

Some favor a pause due to concerns about the stagnation of progress on inflation, while others believe that cuts are necessary to cushion the weakening labor market, according to the minutes of the Fed meeting on October 28-29 released on Wednesday.

"When discussing the short-term course of monetary policy, participants expressed strongly divergent opinions on what policy decision would be most appropriate at the Committee meeting in December," the minutes showed.

This is the clearest signal that Fed members may lean towards a pause in rate cuts in December; the minutes suggested that many participants believed it would 'likely be appropriate to keep the target range unchanged for the rest of the year.'

Still, a possible pause in December will likely not close the door to further rate cuts, as most members foresee more easing, although the timing remains uncertain, according to the minutes.

"Most participants considered that further downward adjustments to the target range for the federal funds rate would likely be appropriate as the Committee moved towards a more neutral policy stance over time",
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