Federal Reserve meeting minutes show a divided committee, with most policymakers supporting further rate cuts if inflation continues to decline, while others are more cautious and prefer to keep rates unchanged for the time being.
Barclays and Goldman Sachs analysts stressed that while the majority supported a cut in December, there are significant differences in views on the future direction of interest rates.
Several institutions expect the Fed to pause rate cuts in January, with the view that rates may be maintained “for some time” before any further easing.
At the same time, policymakers see inflation risks still tilted to the upside, while risks to the labor market are increasing.
Analysts see the next policy direction largely dependent on upcoming economic data, particularly the jobs and inflation reports, which could potentially influence the Fed’s decision in 2026.
