FOMC Minutes: A substantial majority of participants supported a 50 basis point cut

• “Substantial majority” supported 50bp cut
• Committee gained “greater confidence” inflation moving sustainably toward 2% goal
• Risks to employment and inflation goals now seen as “roughly in balance”
• Economic activity expanding at “solid pace”, job gains slowed but unemployment remains low
• Inflation made “further progress” but still “somewhat elevated”
• Most participants see balanced risks to inflation outlook
• Some members would have preferred 25bp cut, citing still-elevated inflation and solid growth
• Bowman dissented, preferring 25bp cut due to core inflation well above target
• Members anticipate moving toward more neutral policy stance over time if data evolves as expected
• Committee will “carefully assess” data for additional rate adjustments

This article was written by Adam Button at www.forexlive.com.