Fed minutes cautiously hint at further rate cuts this year

Federal Reserve officials are increasingly divided over the future path of interest rates, but most believe further rate cuts are necessary this year. The minutes of the Fed's September meeting, released on Wednesday, showed that the committee is grappling with conflicting economic signals and struggling to reach a consensus on which is the most pressing issue: stubborn inflation or a weak labor market. The minutes showed that Fed officials agreed that one rate cut was necessary given recent weak employment data, but they disagreed on the future path. However, the minutes showed that "most believed that further easing of policy would probably be appropriate for the remainder of the year." However, some policymakers "noted that, based on several indicators, financial conditions suggested that monetary policy was not particularly restrictive, and they believed a cautious approach was necessary." According to September forecasts, 10 Fed officials indicated that they expected two more rate cuts this year, while nine believed that one or fewer rate cuts would be necessary. (Jinshi)