Fed minutes to reveal divisions over further rate cuts

The Federal Reserve will publish the minutes of its Sept. 16–17 policy meeting on Wednesday at 1800 GMT, a closely watched document that investors expect will shed light on divisions within the Federal Open Market Committee and the likely path of interest rates through year end. The Sept. meeting resulted in a widely anticipated 25 basis point cut to a federal funds target range of 4.00 to 4.25 percent, and the minutes are expected to reveal how committee members weighed inflation risks against growing concerns about the labor market.

At the meeting, officials revised their Summary of Economic Projections to show a median view of two additional quarter percentage point cuts by year end, followed by smaller reductions in 2026 and 2027. The meeting record also noted at least one dissent: newly sworn-in Governor Stephen Miran preferred a larger, 50 basis point reduction and did not support the committee decision. Fed Chair Jerome Powell told reporters after the meeting that the committee did not feel the need to move quickly on rates and that downside risks to the labor market had increased.

The minutes should offer more detail on areas of disagreement inside the Fed. Participants...