Federal Reserve officials are divided on where they should lower interest rates in the future

Fed officials were divided over where they should cut interest rates in the future when they approved the first rate cut of the year last month, according to meeting notes. Officials generally agreed that signs of a recent slowdown in job growth outweighed concerns about stubborn inflation, so they cut rates by 25 basis points last month. According to the minutes, most officials believed that "further easing in the remainder of the year may be appropriate". But the minutes also noted that a small number of officials did not see the need to cut rates last month, or they could support keeping them on hold. Just over half of the 19 officials who attended the meeting expected at least two more rate cuts this year, meaning the Fed could cut rates back-to-back at meetings this month and in December. But seven officials do not expect further rate cuts this year, underscoring the tricky situation Powell faces in building consensus. Normally, Fed minutes appear "lagged" by a three-week time lag, but the government shutdown has left Fed officials without enough new information to significantly adjust their views. Investors widely expect the Fed to cut rates by another 25 basis points at its next meeting in October. (Wall Street Journal)