Fed minutes: Most officials supported further rate cuts as worries about jobs rose

By CHRISTOPHER RUGABER, AP Economics Writer

WASHINGTON (AP) — Most members of the Federal Reserve’s interest-rate setting committee supported further reductions to its key interest rate this year, minutes from last month’s meeting, released Wednesday, showed.

A majority of Fed officials felt that the risk that unemployment would rise had worsened since their previous meeting in July, while the risk of rising inflation “had either diminished or not increased,” the minutes said. As a result, the central bank decided at its Sept. 16-17 meeting to reduce its key rate by a quarter-point, its first cut this year, to about 4.1%.

Rate cuts by the Fed can lower borrowing costs, over time, for things like mortgages, auto loans, and business loans, encouraging more spending, growth and hiring.

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