02:38 PM EDT, 10/09/2024 (MT Newswires) -- The minutes of the Sept. 17-18 Federal Open Market Committee meeting showed that Federal Reserve Governor Michelle Bowman was not the only participant that wanted a 25-basis point rate cut. While the "substantial majority" preferred the voted-for 50-basis point cut, "some" participants said they thought a smaller rate cut would be appropriate, and a few others suggested they could be convinced to vote for the smaller reduction.

Dallas Fed President Lorie Logan (nonvoter) said that the FOMC should "gradually" lower interest rates to be able to react to any surprises rather than being in a rush to bring the federal funds rate down to its neutral level.

Recent comments of note:

(Oct. 8) Fed Vice Chair Philip Jefferson (voter) said that risks to inflation and employment are now more in balance and that he will continue to monitor incoming data and that balance of risks when making meeting-by-meeting decisions.

(Oct. 8) Boston Fed President Susan Collins (nonvoter) said that the FOMC will likely need to cut rates further to assure that economy remains healthy while noting that inflation continues to move lower toward the 2% goal.

(Oct. 8) Atlanta Fed President Raphael Bostic (voter) noted strength in the economy but acknowledged the risks associated with the hurricanes that are impacting southern portions of the US. Bostic noted that the September employment data suggested that the labor market "slowed down but is not slow" with job gains "robust."

(Oct. 8) Fed Governor Adriana Kugler (voter) said that she would support further reductions in the federal funds rate if inflation continued to slow as expected, adding that she will continue to monitor the incoming data and economic impacts from weather effects and tensions in the Middle East.

(Oct. 8) New York Fed President John Williams (voter) said in an interview with the Financial Times that interest rates should be reduced over time, adding that the 50-basis point reduction at the September FOMC meeting is not a guide for how the FOMC will proceed at future meetings. Strong employment data for September gives the FOMC more time to lower rates, Williams noted.