The minutes of the Federal Reserve's December 9-10, 2025 FOMC meeting were released today (December 30, 2025). The minutes show that while the majority of members agreed that further interest rate cuts would be appropriate over time if inflation continues to fall along the expected path, some members advocated for keeping rates stable for a period after the December cut and adopting a cautious approach. Caution is emphasized in the policy stance due to inflation risks; decisions are highlighted as data-dependent. This reflects the Fed's priority of protecting the labor market in transitioning to a neutral policy objective.

FED FOMC Minutes Released
The Fed's December 2025 meeting minutes contain important clues regarding monetary policy:
The majority believes that further interest rate cuts would be appropriate over time if inflation progresses along the target path.
Some members, however, advocate for keeping rates stable for a period after the December cut and adopting a cautious approach.
General view: A shift to a more neutral policy stance will help prevent potential disruptions in the labor market.
While inflation risks persist, the Fed will continue to pursue a data-driven and balanced path.
Markets are closely watching signals regarding the 2026 interest rate path.
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