Federal Reserve officials remain cautious about inflation while agreeing to cut interest rates
2025-10-08 19:00:16
Some senior Federal Reserve officials last month preferred to keep interest rates on hold, underscoring policymakers' concerns that high inflation remains a threat to the US economy. Despite the Fed's 25 basis point rate cut in September, "a minority" of FOMC members would have supported keeping rates on hold because inflation was likely to remain above target, according to Fed meeting notes. Rising inflation this year has "stalled" progress towards the 2 per cent target, the meeting notes noted, adding that a minority were "concerned that long-term inflation expectations could rise if inflation does not return to target in time".
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