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FED MINUTES: RATE CUTS LIKELY, BUT WITH CAUTION
The Federal Reserve just released the minutes from its December meeting, and the message is clear: The path down for interest rates is getting a lot steeper.
While the Fed delivered a 25-basis-point cut this month, the internal drama suggests a central bank deeply divided on what happens next. Here is what you need to know:
š„ A House Divided
For the first time in years, we saw a 9-3 vote split. This wasn't a "unanimous" decision. Some officials are sounding the alarm on "sticky" inflation, while others are worried about the rising unemployment rate (now at 4.6%).
š The "Pause" is on the Table
The phrase "some time" is the big takeaway. A significant group of officials signaled that keeping rates exactly where they are for an extended period might be necessary. They are worried that cutting too fast now could reignite inflation in 2026.
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