Fed Minutes Show Sharp Divide Over Latest Rate Cut

By Mintesinot Nigussie
Published on 11/20/25

The Federal Reserve cut interest rates last month despite warnings from several officials that the move risked fuelling persistent inflation, minutes from the October 28-29 meeting showed, according to Reuters.

The document indicated weak support for another reduction at the December 9-10 meeting, with traders giving it about a one-in-four chance. Many participants backed last month’s cut, though some in that group said they would also have accepted holding rates steady. Several others opposed the move, citing stalled progress toward the Fed’s 2 percent inflation target.

The FOMC voted 10-2 to lower the benchmark rate to 3.75 percent to 4.00 percent. Policymakers were split into three groups: several favouring another cut in December, several seeing cuts as appropriate later, and many ruling out a December move.

Data delays caused by the government shutdown have added uncertainty. The Fed will not have October or November jobs numbers before the meeting, and no updated inflation schedule has been announced.

U.S. stocks eased gains after the release, while Treasury yields stayed higher. President Donald Trump again criticised Fed Chair Jerome Powell shortly before the minutes were published.