Federal Reserve Watch for Nov. 19: FOMC Minutes Show Considerable Disagreement on Path of Policy

02:45 PM EST, 11/19/2025 (MT Newswires) -- The minutes of the Oct. 28-29 FOMC meeting showed a divisive discussion among the members regarding the future path of monetary policy, with many suggesting that while further rate reductions may be needed, a cut at the December FOMC meeting may not be appropriate.

While many participants supported the rate cut at October meeting, some said that could have supported maintaining the target rate and several were against the rate reduction due to concerns that inflation progress has stalled. Comments from officials since the meeting have echoed those divisions.

Recent comments of note:

(Nov. 18) Richmond Fed President Tom Barkin (nonvoter) said that there are signs that the employment picture is weaker than some data would suggest and that inflation is not likely to increase considerably but would not comment on the appropriate action at the December FOMC meeting due to the lack of government data that would normally provide some guidance.

(Nov. 17) Fed Governor Christopher Waller (voter) called for another 25-basis point reduction in the federal funds rate at the December meeting due to evidence of a weakening labor market, saying that he does not expect inflation to reaccelerate.

(Nov. 17) Fed Vice Chair Philip Jefferson (voter) suggested that the FOMC should move slowly with considering further rate reductions as the target moves closer to neutral but conceded that risks to employment have increased.

(Nov. 14) Kansas City Fed President Jeffrey Schmid (voter) said that the current stance of monetary policy is "modestly restrictive," which he said is appropriate given continued concerns about inflation and suggested that the risk of lowering rates further is tilted toward damaging the Fed's inflation fight.

(Nov. 13) San Francisco Fed President Mary Daly (nonvoter) said that she has an open mind regarding whether a further rate reduction at the FOMC's December meeting is needed, saying that it "premature" to say at this point what the right decision will be.

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