English
The Federal Reserve Meeting Minutes Reveal Cautious Tone and Divergent Views Among Members
The minutes of the Federal Reserve meeting, presented during Chairman Jerome Powell's press conference, showed that inflation remains slightly above target, despite some signs of a slowdown in the labor market. Powell noted that the September jobs report revealed a slight increase in unemployment and a significant decline in the pace of job creation.
The Fed confirmed that it has begun purchasing short-term Treasury bonds to maintain control over interest rates. Inflation and employment forecasts remained largely unchanged from the previous meeting, given the limited data released since October.
The minutes emphasized that the monetary policy path is not without risks, particularly given the continued downward pressure on prices, most notably the tariffs that have caused inflation to rise again. Despite this, the Fed believes that the recent interest rate cuts could help stabilize the labor market in the coming period.
Members of the committee indicated that inflation risks are tilted to the upside, while reaffirming their commitment to bringing inflation back to 2%, supported by a fiscal policy described as "supportive."
The minutes also revealed a division within the committee between those who believed it was necessary to pause and wait, those who advocated for one or more interest rate cuts, and a third group who considered the only options to be maintaining or cutting rates.
Powell affirmed that current interest rates are within a reasonable neutral range, noting that were it not for concerns related to the labor market, rates would be higher than they are now.
Powell commented on US President Donald Trump's decision to choose his successor, saying, "It doesn't concern me and it has absolutely no impact on monetary policy decisions."
