October 09, 2024 18:06 GMT
EMERGING MARKETS: Some FOMC Members Sought Smaller 25BP Cut in Sept - Minutes
EMERGING MARKETS
- (MNI) – Federal Reserve officials were divided on how much to cut interest rates last month, with some participants preferring to cut by a more modest quarter point rather than the 50 basis points that was ultimately delivered, minutes of the September meeting showed Wednesday.
- "Noting that inflation was still somewhat elevated while economic growth remained solid and unemployment remained low, some participants observed that they would have preferred a 25 basis point reduction of the target range at this meeting, and a few others indicated that they could have supported such a decision," the report said.
- "Several participants noted that a 25 basis point reduction would be in line with a gradual path of policy normalization that would allow policymakers time to assess the degree of policy restrictiveness as the economy evolved. A few participants also added that a 25 basis point move could signal a more predictable path of policy normalization."
- The discussion indicated there was more disagreement in the committee than the single dissent of Fed Governor Michelle Bowman in favor of a 25 bp cut would have suggested.
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