Fed Minutes Reveal Sharp Split Over Timing of Additional Rate Cuts

Policy Makers Disagree on the Primary Economic Threat

In the latest release of the Federal Reserve’s meeting minutes, a pronounced division emerged among officials regarding the most pressing challenge to the U.S. economy.

Some members argue that the accelerating rise in unemployment should be the central concern, warning that a weakening labor market could stall growth and undermine recent gains.

Conversely, a different faction contends that persistent inflation remains the dominant risk, emphasizing that price pressures are still above the Fed’s 2 % target and could erode purchasing power if not addressed swiftly.

The clash over whether to prioritize job creation or price stability is influencing the debate on when, or if, the central bank will implement further interest‑rate cuts.

Analysts note that the split could lead to a more cautious approach, with policymakers possibly opting to wait for clearer data before adjusting monetary policy.