FOMC Minutes – October 10, 2024
🟡 50 basis point rate cut: The Fed decided to lower interest rates to a range of 4.75%-5.00% to support the economy and address potential risks from slowing growth.
🟡 Internal debate: Some FOMC members, including Governor Bowman, argued that a rate cut should be more cautious, favoring a 25 basis point cut instead of 50.
🟡 2024 forecast: Interest rates are expected to continue to fall, with a new target of 4.4% instead of 5.1% as before. This suggests that the Fed may make smaller cuts in the future.
🟡 Focus on economic data: The Fed will continue to closely monitor employment and inflation data before making its next rate decision.
🟡 Concerns about economic growth: Some FOMC members stressed that the economy still faces many challenges, especially due to the slow impact of previous rate hikes.
🟡 Inflationary pressures remain: Although inflation has declined, the Fed is still concerned about the risk of inflation returning if it cuts rates too quickly or not well controlled.
🟡 Different views on easing rates: Some FOMC members favor aggressive cuts to stimulate the economy, while others warn that this could cause imbalances if not managed carefully.
