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🚨 FED MINUTES REVEAL GROWING DIVISION AS TWO GOVERNORS DISSENT FOR RATE CUT 🚨
The Federal Reserve released minutes from its January 27-28 meeting on Wednesday, revealing a 10-2 vote to hold rates at 3.50%-3.75%. Governors Stephen Miran and Christopher Waller dissented in favor of a 25 basis point cut, marking a significant split in the Committee. The minutes showed the Fed upgraded its economic growth assessment from “moderate” to “solid” while core PCE inflation was estimated at 3.0% in December, well above the 2% target
The Committee attributed higher core goods inflation to tariff effects, though near-term inflation compensation declined amid lower-than-anticipated pass-through to consumers. Several participants noted tariff-related price increases could prove temporary, with forward rates suggesting inflation will stabilize near current levels through year-end. The minutes indicated that while most participants supported holding rates steady, several emphasized the decision would have been finely balanced or could have supported maintaining rates unchanged 📢
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Treasury yields rose following the release, with the 10-year yield climbing 3 basis points to 4.087%. The minutes suggested a higher bar for further rate cuts given labor market stabilization and solid economic activity. Several participants expressed concern about lowering rates further in the context of elevated inflation readings, worried it could signal diminished commitment to the 2% inflation objective
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