Federal Reserve’s December rate cut exposes deep policy divide — Do FOMC minutes complicate 2026 interest rate cuts?

Federal Reserve ended 2025 with a sharply divided decision on interest rates. Newly released December meeting minutes show officials narrowly backed a rate cut, while deeply disagreeing on what comes next. With inflation still elevated, growth strong, and jobs steady, the path for 2026 rate cuts looks increasingly uncertain. The December 9–10 Federal Open Market Committee meeting concluded with a 9–3 vote to cut rates by 25 basis points.