Hawkish minutes from October meeting, more hawkish than market expected

Many at October meeting suggested appropriate to keep funds rate unchanged for rest of year, only several supported further cuts

Confusing minutes with lot of back and forth, big debate about October cut and December cuts

Most were concerned that rate cuts could add to risk of higher inflation becoming entrenched

Participants generally agreed there was upside risk to inflation that was elevated and downside risk to employment was also elevated

On October rate cut debate: many in favor of lowering target, some could have gone either way, several against lowering rate outright

Those in favor focused on downside risk to employment and inflation diminishing or little change

Those opposed said progress toward inflation had stalled, inflation had actually increased, lack of confidence in Fed heading back to 2% target

Fed debated how restrictive policy was relative to neutral rate - some said Fed still restrictive even after quarter point, others saw economy as resilient with no clear sign Fed was actually restrictive

Strong differing views about near-term course of policy, huge debate over December but most sided with not cutting rates