Fed Minutes: Most Officials Expect More Rate-Cuts

The FOMC Minutes reveal that most Fed officials expect further rate cuts in 2026, although divisions remain over whether the primary threat to the economy is weak hiring or stubbornly high inflation. Some officials who supported the rate cut did so with reservations, suggesting the decision was finely balanced. The minutes also indicate that reserve balances have declined to ample levels, making it appropriate to initiate purchases of shorter-term Treasury securities.