Disagreement among Federal Reserve officials regarding the timing and extent of interest rate cuts has emerged. Minneapolis Fed President Neel Kashkari expressed concerns that rising electricity demand could drive inflation upward, while also highlighting the potential for a significant impact on economic growth should rate cuts be implemented too aggressively. Meanwhile, Fed Board Member Stephen Miran disagreed, arguing for larger cuts to stimulate the economy amidst slowing population growth and the minimal influence of former President Donald Trump’s tariffs on price stability. He even advocated for a 50 basis point cut instead of the recently implemented 25 basis point adjustment. However, other officials emphasize caution in addressing potential inflationary pressures, particularly regarding ongoing tariff concerns and inflation exceeding the target rate for years. This clashing opinion within the Fed’s ranks adds complexity to their decision-making process, especially at a time when economic signals of labor market slowdown are emerging. The upcoming October 28-29 meeting is expected to face further challenges due to the federal government shutdown, which has hampered data collection and analysis crucial for policy decisions. This lack of information could complicate the Fed’s approach and necessitate further adjustments to the current policies.