A “substantial majority” of US Federal Reserve officials supported a half-point rate cut during the September meeting to ease inflation and economic concerns. However, some officials favored a smaller quarter-point cut, indicating a cautious stance.
The minutes revealed that while there was broad support for the half-point cut, it was not seen as a commitment to future cuts. Despite the differences, many saw the need to adjust monetary policy to align with labor market and inflation data, with inflation slowing significantly since July.
At its September 17-18 meeting, the US Federal Reserve decided on a half-point rate cut, lowering the benchmark interest rate from 5.25%-5.50% to 4.75%-5.00%. The US dollar’s price performance weakened following the rate cut.
