The Federal Reserve Meeting Minutes reveal significant internal division, with the decision-making body sticking to rate cuts amid inflation warnings

November 20th. The minutes from the Federal Reserve's October policy meeting indicated that the Fed's decision-making body was deeply divided during the rate cut last month. Although policymakers warned that rate cuts could impede efforts to control inflation - with U.S. inflation remaining above the 2% target for the past four and a half years - they ultimately decided to lower the rate. The minutes of the meeting disclosed: "Many participants were in favor of reducing the federal funds rate target range," but at the same time, it was noted that some members who supported maintaining the status quo found that option acceptable. Several officials directly opposed the rate cut, "expressing concerns that the committee's progress in achieving the 2% inflation target had stalled and noting that if inflation did not promptly return to 2%, long-term inflation expectations could rise." The minutes further stated: "Most participants noted that further lowering the policy rate could exacerbate the risk of persistent high inflation or be misinterpreted by the markets as policymakers not being firm in achieving the 2% inflation goal." These minutes reflect officials' efforts to seek consensus in the absence of data: balancing the dual risks of rising inflation and a weak job market, while also cautioning that a "sharp repricing of AI investments in the market" could lead to "disorderly stock market declines." (Kryptonian)