Fed Officials Markedly Split Over Policy Path Ahead, December Meeting Minutes Show

Federal Reserve officials are divided on future monetary policy, as shown in the minutes from the Dec. 9-10 meeting. The FOMC cut interest rates by 25 basis points, but three officials dissented. Concerns about high inflation and labor market weakness persist, with a majority suggesting further cuts may be appropriate if inflation decreases. The probability of unchanged rates next month rose to 85%. Economists expect three more rate cuts through 2026, while uncertainty looms with potential changes in leadership at the Fed.