By Howard Schneider

WASHINGTON (Reuters) -A divided Federal Reserve cut interest rates last month even as policymakers cautioned that lower borrowing costs could risk undermining the fight to quell inflation that has been above the U.S. central bank’s 2% target for four and a half years, the minutes from the October 28-29 meeting showed on Wednesday.

“Many participants were in favor of lowering the target range for the federal funds rate,” the minutes stated, while noting that some members of that group also would have been satisfied with leaving rates steady.

Several others opposed the rate cut outright, and “expressed concern that progress toward the Committee’s 2% inflation objective had stalled … while also noting that longer-term inflation expectations could rise should inflation n

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