FOMC Minutes Reveal a Much More Divided Fed

The transcript discusses the Federal Reserve's decision on September 21st to keep the benchmark rate unchanged, revealing internal divisions within the Fed. The debate centers around labor market slack, with some members advocating for a rate increase due to tight labor conditions, while others argue for maintaining low rates to draw more people into the workforce. Concerns about the Fed's credibility and economic leverage are also raised. The possibility of a rate hike on November 2nd is considered unlikely due to recent labor force data and the proximity to the federal election.

What argument did the dissenters present regarding the labor market?

What factors might influence the Fed's decision to raise rates on November 2nd?