Fed “minutes”. Many Fed members recognized the interest rate cut. in December considered inappropriate

Many Fed members recognized the interest rate cut. in December as inappropriate – according to the minutes of the last Fed meeting. The minutes also show that there are differences of opinion within the FOMC regarding the path for monetary policy.

“When discussing the near-term monetary policy stance, participants expressed sharply divergent views on what decision would likely be most appropriate at the December Committee meeting. Most meeting participants concluded that further reductions in the target range for the federal funds rate would likely be appropriate as the Committee has moved towards a more neutral stance on monetary policy over time, although several of these participants indicated that they did not necessarily believe another 25-bp cut was appropriate at the December meeting.” – written in the minutes of the US Federal Reserve meeting on October 28-29.

“Several meeting participants assessed that a further reduction in the target range for the federal funds rate could be appropriate in December if the economy were growing more or less in line with their expectations in the coming inter-meeting period. Many meeting participants suggested that, given their economic outlook, it would probably be appropriate to keep the target range unchanged for the rest of the year,” it added.

After the meeting on October 28-29, the Fed lowered interest rates. in the US by 25 bp. to the range of 3.75-4.00 percent. The Fed announced that it would suspend the reduction of the balance sheet total from December 1.

The next meeting of the Reserve is scheduled for December 9-10. After the meeting, the latest quarterly macro projections and a dot-plot chart will be presented.

The dollar is strengthening against the basket of currencies by 0.6%. to 100.20 points, and the profitability of 10-year Treasuries falls by 1 basis point. to 4.11 percent (PAP Business)

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