Division at the Fed: Some officials want to keep interest rates on hold "for some time"

""[S]ome 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 released on Tuesday said."

"A "few" officials said that would allow the Fed to observe how the central bank's previous cuts were impacting the labor market and the economy."

""Most" officials said that further rate cuts "would likely be appropriate if inflation declined over time as expected," the minutes show."

"Those who preferred to keep rates on hold "expressed concern that progress toward the [Fed's] 2 percent inflation objective had stalled in 2025 or indicated that they needed to have more confidence that inflation was being brought down sustainably," according to the minutes."

The Federal Reserve cut interest rates for the third consecutive time, with the vote producing the most dissent since 2019. Two Fed presidents preferred to pause, while Governor Stephen Miran preferred a larger reduction. Chair Jerome Powell signaled that additional cuts are not guaranteed. Minutes showed some participants favored holding the target range unchanged for a time after the cut to observe effects, while most said further cuts would likely be appropriate if inflation declines as expected. Some officials worried progress toward the 2 percent inflation goal had stalled in 2025. GDP growth is rapid but the labor market is weak; November inflation fell and tariff-driven price risks and AI-related labor dynamics add uncertainty about job impacts.

Read at Axios