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December Meeting Minutes Show the Fed Has Deep Divisions Over Rate Cuts in December, Despite the Final Outcome of 9–3 to Cut by 0.25%, Bringing the Rate to 3.5%–3.75%
🔹 Even some officials supporting a cut admit the decision was a close call and they could have kept rates unchanged
🔹 Major Disagreements
— One side wants to support the labor market
— The other worries inflation is still above the 2% target
🔹 The “Dot plot” indicates the Fed expects very slow cuts, about once in 2026 and once in 2027, bringing rates close to 3%
🔹 The Fed believes President Donald Trump’s tariffs are putting pressure on inflation, but most think the impact is temporary
🔹 Overall, the meeting minutes reflect what Fed Chair Jerome Powell shared earlier, so nothing surprising.
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