by Howard Schneider

WASHINGTON (Reuters) – A “substantial majority” of Federal Reserve (Fed) officials backed an unusual 50 basis point rate cut in September to kick off the U.S. central bank’s monetary easing cycle, according to the account -pronouncement published Wednesday of the last meeting of the institution.

However, the minutes of the September 17-18 meeting show, there is an even greater consensus that this decision does not commit the Fed to any threshold or timetable for reducing financing costs. loan.

Supporters of a half-percentage-point rate cut in September “observed that such a recalibration of monetary policy would bring it more in line with recent inflation and labor market indicators.” , it is written in the document.

Other Fed officials noted that it had been possible to cut rates as early as July and that the data collected in the meantime only reinforced the scenario of monetary easing.

“Some” participants at the September meeting, however, advocated a cut of just 25 basis points, while “several others” indicated they “could have supported” such a measure, the minutes show .

While a half-percentage-point rate cut traditionally illustrates the Fed’s fears about the economy slowing too much, the September decision “should not be interpreted as evidence of a less favorable economic outlook.

“It was important to communicate,” the minutes read, with Fed officials emphasizing after the meeting that they saw their decision as a “recalibration” intended to take into account the sharp decline in inflation.

Still, Fed officials have growing concerns about the labor market, with some noting recent increases in jobless claims.

(Howard Schneider; Jean Terzian)

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