20-Nov-2025 11:21

The latest FOMC minutes reveal a sharply divided Federal Reserve, with policymakers holding conflicting views on whether to extend the easing cycle into December. While most officials believe further downward adjustments to the federal funds rate will likely be needed, several stressed that another 25 bps cut may not be the right call next month. A number of participants argued that if the economy unfolds broadly as anticipated through the intermeeting period, an additional December cut could still be appropriate. However, many others leaned toward keeping the target range unchanged for the rest of the year, suggesting caution amid mixed economic signals. The tension follows the Fed's October decision, where the committee delivered a 25 bps reduction, bringing the policy rate to 3.75%'4.00%. With December approaching, the minutes underscore deep uncertainty within the Fed about how aggressively to proceed, setting the stage for a highly anticipated policy meeting.

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