Fed Minutes Show Divisions on Aggressive Rate Cuts. Treasury Yields Surge On Fed Action

Benzinga 2024-10-10

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Federal Reserve officials debated how aggressive to be with rate cuts during their September meeting, ultimately deciding on a 50 basis point reduction. The decision aimed to balance progress on inflation with concerns over a stronger-than-expected labor market. Some policymakers preferred a smaller 25 basis point cut, reflecting more caution on easing monetary policy. Since the meeting, labor market data has shown strength, with nonfarm payrolls increasing by in September, much higher than expected. Treasury yields have surged in response to the Fed’s actions, with the 10-year and 2-year yields climbing since the September meeting.

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