The meeting minutes of the Federal Reserve’s (Fed) latest meeting revealed that a significant majority of the bank’s officials are in favor of a 50 basis point cut in the policy interest rate. The Fed released the minutes of the Federal Open Market Committee (FOMC) meeting held on September 17-18. During this meeting, the policy interest rate was lowered for the first time in four years, to a range of 4.75-5.00%. The minutes highlighted differences of opinion among officials regarding the size of the interest rate cut. It was stated that, considering progress in inflation and risk balances, all officials agreed that easing the monetary policy was appropriate. While a majority of officials expressed support for a 50 basis point rate cut, some officials emphasized that despite strong economic growth and low unemployment, inflation still remained high. Therefore, these officials favored a 25 basis point cut and mentioned that a few officials might also support this view. Additionally, some officials suggested that a 25 basis point cut would be more compatible with a gradual policy normalization, allowing more time to evaluate the impact of monetary policy as the economy progresses. It was noted that almost all officials believed that recent monthly data indicated sustainable progress towards the 2% inflation target. Officials also expressed increased confidence that inflation would reach this level. In the meeting, it was agreed that labor market conditions should be closely monitored and some officials warned that further loosening in labor market conditions could pose a serious risk of deterioration. The minutes discussed economic outlook risks and uncertainties, stating, “Nearly all participants noted diminished inflation risks, but increased downside risks related to employment.” The decision to cut the interest rate by 50 basis points in the Fed’s September meeting was taken by a vote of 11 to 1. Fed Board Member Michelle Bowman opposed the cut, supporting a 25 basis point reduction instead. The next Fed meeting is scheduled for November 6-7.