Investing.com - Federal Open Market Committee members expressed concern about the path the economy, but also questioned the market's expectations for future rate cuts, minutes of the previous FOMC meeting published Wednesday showed.
"A few participants judged that the expectations regarding the path of the federal funds rate implied by prices in financial markets were currently suggesting greater provision of accommodation at coming meetings than they saw as appropriate and that it might become necessary for the Committee to seek a better alignment of market expectations regarding the policy rate path with policymakers' own expectations for that path," the minutes showed.
Several participants suggested that the committee's postmeeting statement should provide more clarity about when the recalibration of the level of the policy rate in response to trade uncertainty would likely come to an end.
Since the September meeting, expectations for a 25-basis-point-cut in October have risen from below 10% to more than 80%, according to Investing.com’s Fed Rate Monitor Tool.
In the wake of release of the minutes, the S&P 500 held onto previous gains and was up 1% on the day as the market recovered from Tuesday's slump. Interest rates were slightly higher as well, with the 10-Year Treasury yield at 1.579%, up from Tuesday's 1.539%.