Most Federal Reserve officials supported additional interest rate cuts at last month’s meeting, according to newly released minutes.
he minutes show that a majority of policymakers believed the risk of rising unemployment outweighed concerns about inflation.
“In particular, most participants observed that it was appropriate to move the target range for the federal funds rate toward a more neutral setting because they judged that downside risks to employment had increased over the intermeeting period and that upside risks to inflation had either diminished or not increased,” the minutes stated from the Sept. 16–17 meeting.
The central bank ultimately reduced its benchmark rate by a quarter-point — the first cut of 2025.
Rate cuts typically lower borrowing costs for mortgages and other loans, spurring economic activity by encouraging spending. But cutting too aggressively risks reigniting inflation.
As previously reported by The Dallas Express, new Fed Governor Stephen Miran — formerly head of President Donald Trump’s Council of Economic Advisors — had urged a larger rate cut. Both Miran and Trump have argued that the central bank has kept rates too high for too long.
“Housing in our Country is lagging because Jerome “Too Late” Powell refuses to lower Interest Rates,” wrote President Trump on Truth Social in July.
“Families are being hurt because Interest Rates are too high, and even our Country is having to pay a higher Rate than it should be because of ‘Too Late,’” Trump added. “Our Rate should be three points lower than they are, saving us $1 Trillion per year (as a Country). This stubborn guy at the Fed just doesn’t get it — never did, and never will. The Board should act, but they don’t have the courage to do so!”