NYT: Fed Retains Option to Cut Rates

According to the New York Times, Federal Reserve minutes show that when Fed officials cut interest rates at a meeting this month, they avoided explicitly hinting at what might happen next. The minutes released on Tuesday provided little signal about whether Fed officials are likely to cut rates at their December meeting or how much they might cut in 2025. Economic data has been stronger than economists had expected in recent months. The job market, which had been showing signs of cooling, has stabilised. In light of this, some economists have been wondering if the Fed could pause in cutting rates at its upcoming meeting. But the minutes of the November meeting provided little clear guidance, except to say that over time, interest rates ‘gradually’ lower ‘may be appropriate.’