FILE - In this Oct. 4, 2019, file photo Federal Reserve Chairman Jerome Powell attends a panel at the Federal Reserve Board Building in Washington. On Wednesday, Oct. 9, the Federal Reserve releases minutes from its September meeting when it cut interest rates for a second time this year. (AP Photo/Jacquelyn Martin, File)

Fed officials sharply divided over September rate cut

October 09, 2019 - 11:06 am

WASHINGTON (AP) — Federal Reserve officials were sharply divided last month when they decided to cut their key policy rate for a second time this year, a split that indicates the path forward for future rate cuts remains cloudy.

Minutes of the discussion at the September meeting showed that the majority of Fed officials believed a second quarter-point cut was appropriate given increased economic uncertainty from trade tensions and a slowing global economy.

However, a "couple" of participants indicated they favored a stronger half-point reduction, saying the larger move would reduce the risks of a possible recession.

But a third group of "several participants" argued that the Fed should not be cutting rates at all, saying that the current outlook for the economy had changed little since the central bank's last meeting.