Federal Reserve officials are sharply divided on the future path of interest rates, casting significant doubt on the likelihood of a December rate cut and prompting a notable shift in market expectations.

The minutes from the Federal Open Market Committee (FOMC) meeting on Oct. 28–29, 2025, released Wednesday, showed a clear split among participants after they decided to lower the target range for the federal funds rate to 3.75%-4.00%.

While many participants favored the October rate cut, some of them said they could have supported no change. The more crucial division emerged in discussions of future policy moves.

Fed Minutes Reveal Deep Divide, December Rate Cut Hopes Fade

Several participants assessed that a further lowering of the target range for the federal funds rate could well be appropriate in December if the economy evolved as they expected. This optimism, however, was countered as “many participants suggested that, under their economic outlooks, ...