The vast majority of U.S. Federal Reserve officials supported a 50-basis-point cut at the September meeting, according to minutes of the two-day policy meeting released on Wednesday.
The minutes of the Federal Open Market Committee also provided details of views on inflation among participants, as almost all participants saw upside risks to the inflation outlook as having diminished, while downside risks to employment were seen as having increased.
Participants also held that reducing policy restraint too late or too little could risk unduly weakening economic activity and employment, while several participants believed that reducing policy restraint too soon or too much could risk a stalling or a reversal of the progress on inflation, the minutes showed.
The minutes also showed that the rate cut will continue as long as inflation in the United States continues to decline, but its frequency and range depend on the U.S. economic data.
John Williams, president and chief executive officer of the Federal Reserve Bank of New York, said on Tuesday that further rate cuts would be appropriate as time goes by.
On the same day, Susan Collins, president and chief executive officer of the Federal Reserve Bank of Boston, said that the Fed might have more rate cuts in the future.
On Wednesday, president and chief executive officer of the Federal Reserve Bank of Dallas Lorie Logan said that the U.S. is still facing an upward inflationary risk, and the Fed should slash interest rates gradually, instead of abruptly.
The U.S. Federal Reserve announced to lower the federal funds rate by 50 basis points to 4.75 to 5 percent on Sept 18.
It was the first rate cut by the Fed since March 2020, and also marks the shift of the Fed's monetary policy from restrictive monetary policies to easing monetary policies.
Most U.S. Fed officials support 50 basis point cut
Most U.S. Fed officials support 50 basis point cut
Most U.S. Fed officials support 50 basis point cut
