The US Federal Reserve has released the minutes of its latest meeting, and they confirm what many analysts suspected: uncertainty inside the central bank is growing, and opinions are drifting apart, DKNews.kz reports.
Some officials who eventually supported cutting rates say they could just as easily have voted to leave policy unchanged. In other words, the Fed was far from united this time.
What the Fed actually decided
At its December 9-10 meeting the Fed:
- cut the benchmark rate by a quarter point
- brought it down to an average of 3.6%
- the lowest level in three years
But the way the vote unfolded matters even more.
The decision passed 9 to 3 - an unusually high level of dissent for a committee that usually works by consensus.
- two members wanted no change
- one argued for a deeper cut of half a point
What they are arguing about
The big debate inside the Fed is simple: a weakening job market vs persistently high inflation.
If labor market risks dominate, the Fed tends to cut more. If inflation is still the bigger threat, rates stay high - or even move higher.
There are 19 members around the table, though only 12 vote. Still, everyone participates in the discussion, which makes the internal split visible.
They cut rates - but many were unsure
The minutes show that even some supporters of the cut had serious reservations.
Several officials:
- preferred to wait for fresh data
- worried about acting without clarity
- warned that uncertainty remains high
Complicating matters further, key data on jobs, inflation and growth were delayed due to a six-week government shutdown - meaning policymakers were working with outdated numbers.
Why this matters
A divided Fed sends a strong signal to markets.
It may mean:
- rate policy becomes harder to predict
- decisions could swing more sharply
- uncertainty rises for businesses and investors
Most importantly, the Fed itself is still figuring out which risk weighs more right now: stubborn inflation or a slowing economy.
