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MNI ASIA OPEN: Little New From FOMC Minutes, Focus on CPI

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US

MNI FED: Some FOMC Members Sought Smaller 25BP Cut in Sept - Minutes
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.

MNI FED: Logan Argues For Gradual Fed Cuts, Citing Inflation Risks
Federal Reserve Bank of Dallas President Lorie Logan said Wednesday she supports "a more gradual" approach to lowering interest rates after the jumbo size cut last month, because inflation could still get stuck above 2%. "Following last month’s half-percentage-point cut in the fed funds rate, a more gradual path back to a normal policy stance will likely be appropriate from here to best balance the risks to our dual-mandate goals," she said in remarks prepared for a Houston energy conference. 

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EXECUTIVE SUMMARY

A graph of blue and orange lines  Description automatically generated

US

MNI FED: Some FOMC Members Sought Smaller 25BP Cut in Sept - Minutes
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.

MNI FED: Logan Argues For Gradual Fed Cuts, Citing Inflation Risks
Federal Reserve Bank of Dallas President Lorie Logan said Wednesday she supports "a more gradual" approach to lowering interest rates after the jumbo size cut last month, because inflation could still get stuck above 2%. "Following last month’s half-percentage-point cut in the fed funds rate, a more gradual path back to a normal policy stance will likely be appropriate from here to best balance the risks to our dual-mandate goals," she said in remarks prepared for a Houston energy conference. 

Keep reading...Show less