Fed cuts interest rates as policymakers remain divided

The Federal Reserve has approved another interest rate cut, lowering rates by 25 basis points to a range of 3.50%–3.75%. Minutes from the latest meeting reveal, however, deep divisions among policymakers over the future direction of U.S. monetary policy.

Some members of the FOMC supported the move in response to slowing job growth and rising economic uncertainty, while others warned that easing policy too quickly could reignite inflationary pressures. The level of disagreement was among the highest seen in recent years, highlighting how challenging the current economic assessment has become.

According to the released minutes, while this marks the third rate cut in 2025, projections for 2026 suggest a much more cautious stance. Many officials emphasized that further decisions will depend heavily on incoming inflation data and developments in the labor market.