The Fed debated a bigger rate cut at its last meeting but wanted to avoid appearing like it was on a path to more rate cuts, minutes show
WASHINGTON - Federal Reserve policymakers were deeply divided over whether to cut interest rates last month but were united in wanting to signal they were not on a preset path to more cuts, a message not likely to sit well with U.S. President Donald Trump.
While a “couple” of participants favored a deeper cut of half a percentage point to help lift inflation toward the Fed’s target and thwart fallout from global trade tensions, a larger number - characterized in the minutes as “several” - favored no change at all. The divisions revealed in the minutes indicate there might have been more dissents if all participants had a vote. While Fed board governors are permanent voters, only five of the 12 regional reserve bank presidents have a vote at each meeting.
However, Fed policymakers agreed at their July 30-31 meeting that they did not want to give the impression they were planning more rate cuts. Minneapolis Federal Reserve Bank President Neel Kashkari, who does not have a vote on the Fed’s monetary policy committee this year but participates in policy discussions, urged the Fed on Wednesday to use pledges about future policy, known in central banking as “forward guidance,” to boost the economy.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Fed debated bigger rate cut, wanted to avoid appearing on path for more cutsFed debated cutting interest rates more aggressively at last meeting, although central bankers were united in wanting to avoid the appearance of being on a path to more rate cuts
Leer más »
Fed sees tariffs as 'persistent headwind' to economic growthFederal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battle
Leer más »
Trump slams Fed Chair Powell: 'He’s like a golfer who can’t putt'President Donald Trump continued his months-long criticism of Federal Reserve Chair Jerome Powell on Wednesday.
Leer más »
Fed Minutes to Show Extent of Committee Divisions on Last Month’s Rate CutThe Fed minutes are expected to show committee divisions at the last meeting before policy makers’ decision to cut interest rates for the first time in more than a decade
Leer más »
Opinion | The Fed Has Too Much to DoFrom WSJopinion: The Fed already has more power than an independent government agency should. Allowing it to go forward with a payment system plan that unnecessarily competes with the private sector makes no sense, writes Peter J. Wallison.
Leer más »
US Treasury yields tick higher as investors await Fed meeting minutesMarket focus is largely attuned to the Federal Reserve, with the U.S. central bank scheduled to publish its latest meeting minutes.
Leer más »