Rare Split Emerges as Fed Moves to Cut Rates

The Federal Reserve’s vote Wednesday to lower its benchmark interest rate by a quarter of a percentage point exposed a rare divide among policymakers as concerns grow over slowing job growth and persistent inflation, with two members of the Federal Open Market Committee dissenting from the majority of the group.

The members, Gov. Stephen Miran and Kansas City Fed President Jeffrey Schmid, dissented for different reasons, with Miran favoring a deeper half-point cut to support the softening labor market, and Schmid arguing against any reduction, citing still-elevated inflation.

Both dissenting members had outlined their views publicly in August, with Miran warning then that monetary policy was “very restrictive” and Schmid saying there was “no urgency” to cut rates, according to reports.