The minutes of the FOMC meeting released on October 9, 2024, recorded a heated debate over the decision to cut interest rates by 50 basis points (bps) at the September meeting. Although the decision was eventually adopted, Committee members had diverse views, with some members arguing that a cut of only 25 bps would be more stable and predictable for the market.

The main reasons for the 50 bps cut were to respond quickly to the recent slowdown in economic growth. The unemployment rate has now fallen to 4.1% and GDP growth last quarter rose to over 3%, indicating that the US economy is showing positive signs of recovery. However, some members remained concerned about the consistency of monetary policy and the impact of this decision on controlling inflation expectations.

Fed Chairman Jerome Powell affirmed that the US economy is in good shape with stable unemployment and inflation moving towards the 2% target. He emphasized that the FOMC will continue to assess the situation at each meeting and adjust policy in accordance with actual economic conditions, not rushing to make decisions too soon.