While most Federal Open Market Committee members voted to trim the federal funds rate at their September meeting, some said they would have supported holding it steady while the newest member argued for a deeper cut, according to minutes from the meeting.
At the meeting, the FOMC voted to lower the target range for the federal funds rate by 25 basis points to 4%-4.25%, with newly installed Governor Stephen Miran voting against the motion as he preferred a cut of 50 basis points. However, the minutes show that a few FOMC members believed there was merit in leaving the target range unchanged, or at least would not have opposed a motion to do so.
“These participants noted that progress toward the committee’s 2% inflation objective had stalled this year as inflation readings increased and expressed concern that longer-term inflation expectations may rise if inflation does not return to its objective in a timely manner,” according to the minutes.
The minutes also show that almost all FOMC members believe that with the cut approved at the meeting, the committee “was well positioned to respond in a timely way to potential economic developments.”
