Fed Officials Debate Holding Policy Rate Steady
The Fed published the minutes on Tuesday, covering the Federal Open Market Committee's (FOMC) session on December 9-10.
The record of the meeting, in which the policy rate was lowered by 25 basis points to the 3.50-3.75% range as market participants had anticipated, showed that certain officials remained cautious about additional easing measures.
The minutes noted that while the majority of Fed officials endorsed reducing the policy rate at the December session, some favored leaving it unchanged.
It was highlighted that some individuals who supported the rate cut made their decisions based on a “delicate balance,” and these officials could also see merit in maintaining the rate.
The minutes explained: “Those who favored lowering the target range for the federal funds rate generally judged that such a decision was appropriate because downside risks to employment had increased in recent months and upside risks to inflation had diminished since earlier in 2025 or were little changed.”
Additionally, the minutes suggested that some officials believed a reduction in the policy rate would align with anticipated declines in inflation over the coming quarters, foster stronger economic growth in 2026, and support stability in the labor market.
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