Fed minutes show split over pace of rate cut

The minutes of today’s central bank meeting showed that some participants favored cutting the target range for borrowing costs by 25 basis points at this meeting, the first time there has been a split in opinion since 2005.

Many participants indicated that a 25 basis point cut in the target range would be consistent with a gradual path that would allow policymakers time to assess the degree of policy tightening as the economy evolves.

According to information available at the time of the meeting, real GDP has expanded strongly since the beginning of the year, with the pace of job creation slowing, the unemployment rate rising, and inflation declining on an annual basis.