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Members of the Federal Open Market Committee (FOMC) – the Federal Reserve's monetary policy-setting arm – agreed that the labor market had remained strong since the last meeting, with economic activity rising at a moderate rate, according to minutes from the committee's October meeting released Wednesday.

"The FOMC is satisfied that it has done enough to address the risks to the economy posed by the trade war, slow global growth, and low levels of business investment," said NAFCU Chief Economist and Vice President of Research Curt Long. "Although the Fed signaled a halt to this year’s series of rate cuts following the action at this meeting, a rate hike is not on the horizon."

Additionally, most members believed that a rate cut of 25 basis points would be appropriate, referencing global developments weighing on the economic outlook. Following the October meeting, the committee cut interest rates by 25 basis points, moving the federal funds target rate to a range of 1.5 to 1.75 percent.

Minutes released Wednesday also revealed that participants:

• judged that that the rate cut would be well calibrated to support the outlook of moderate growth, a strong labor market, and inflation near the committee's symmetric 2 percent objective;
• continued to view the downside risks surrounding the economic outlook as elevated; and
• generally viewed the economic outlook as positive.

The FOMC will next meet Dec. 10 -11; its tentative meeting schedule for 2020 can be viewed here.