FX.co ★ Fed Split on Need for Rate Cuts: Minutes

In the October meeting of the Federal Reserve, a number of officials supported lowering the target range for the federal funds rate, though opinions varied. Some were inclined to maintain the current rates, while others opposed any reduction, as reflected in the minutes from the latest FOMC meeting. Participants had sharply differing views on the most appropriate decision for the upcoming December meeting. A majority anticipated that further decreases in the target range might be necessary; however, several participants stressed that a 25 basis points cut may not be suitable in December. Some members considered another rate cut in December to be fitting if the economy aligns with expectations during the interim period. Conversely, many members felt that, based on their forecasts, maintaining the current target range through the year-end would be prudent. Following the October 2025 meeting, the Federal Reserve reduced the federal funds rate by 25 basis points, setting it at 3.75%–4.00%.