At the December meeting, 11 out of 12 Federal Reserve officials voted against cutting interest rates by a quarter point. Despite the majority decision, Fed Chair Jerome Powell stated that the choice was a 'closer call,' indicating a level of deliberation among the officials.
This decision contrasts with previous monetary policy meetings this year, where officials seemed to have more certainty in their actions. Cleveland Fed President Beth Hammack dissented against the rate cut in December, while Fed Governor Michelle Bowman had advocated for a smaller rate cut at the September meeting.
Explaining the rationale behind the decision, Powell emphasized that the rate cut was deemed necessary to support the achievement of the Fed's dual mandate of maximum employment and price stability. He stated, 'We decided it was the right call because we thought it was the best decision to foster achievement of both of our goals.'
