"In economic projections released after the December 9-10 meeting, six officials outright opposed a cut and two of that group dissented as voting members of the Federal Open Market Committee. "Most participants" ultimately supported a cut, with "some" arguing that it was an appropriate forward-looking strategy "that would help stabilize the labor market" after a recent slowdown in job creation."
""Some participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for some time after a lowering of the range at this meeting," the minutes said of a debate that saw officials dissent both in favor of tighter and looser monetary policy, an unusual outcome for the central bank that has now happened at two consecutive meetings."
"The quarter-point rate cut approved in December lowered the Fed's benchmark overnight interest rate to a range of between 3.5% to 3.75%, the third consecutive move by the central bank as officials agreed that a slowdown in monthly job creation and rising unemployment warranted slightly less restrictive monetary policy. But as rates fell, and approached a neutral level that neither discourages nor encourages investment and spending, opinion at the Fed became more divided about just how much more to cut."
Federal Reserve officials approved a quarter-point rate cut in December, lowering the benchmark overnight rate to 3.5–3.75 percent, the third consecutive reduction. Officials cited slowing monthly job creation and rising unemployment as reasons to adopt slightly less restrictive policy. The decision was finely balanced, with some participants arguing the cut would help stabilize the labor market while others warned progress toward the 2 percent inflation objective had stalled. Six officials opposed a cut in their projections and two dissented as voting members. Debate included views that the target range might remain unchanged for some time after this reduction.
Read at Fast Company
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