Fed Officials Split on Rate-Cut Timing as Inflation Risks Persist

Diverging opinions inside the Federal Reserve emerged after the latest policy meeting, with several officials voicing concern that inflation may not cool quickly enough. Some policymakers argued the recent rate cut could reignite price pressures if consumer demand rebounds sharply. Others countered that labor markets are softening and additional tightening would hurt growth. Minutes highlighted uncertainty over the durability of disinflation trends. Traders interpreted the mixed tone as a signal that the central bank could pause before resuming cuts, leaving markets sensitive to upcoming economic data releases.