Fed near point of slowing its policy easing following December cut, minutes show

10-year as we get the minutes coming out right now from Steve Leesman in Washington. Steve, do tell. The Federal Reserve at its December meeting was at or near the point after cutting by a quarter of slowing its policy easing. The rate cut that they did enact was seen as quote finally balanced. It was a finally balanced call and some wanted to not cut at all. That is more than just the one dissent. Not everybody has the vote. So why did the Fed cut? The minutes say that the Fed cut rates to maintain the strength of the economy and the labor market while continuing progress on inflation because they believe they were restrictive. The risk between inflation unemployment and unemployment were seen as roughly balanced. Inflation had eased substantially though it remains somewhat elevated. What you're going to hear next is a lot of the back and forth at the meeting between those most concerned about inflation and those less concerned. So the pace of disinflation had slowed some said with recent readings higher than anticipated. Upside risk to inflation had increased. Several were concerned that disinflation may have stalled or risk stalling. On the other side some people said disinflation was still apparent across the board especially in market prices as opposed to the non-market prices on a range of goods and services. Now moving on the firms were seen as more reluctant to increase prices. Consumers were more price sensitive. Changes in trade and immigration policy. Now a big discussion about coming fiscal policy here. It's mentioned several times in the minutes. Changes in trade immigration policy could delay inflation improvement. The uncertainty of elevated it also elevated the uncertainty out there about policy. It was a rising business optimism however and uncertainty reported from expectations for tax policy changes along with deregulation. Positive market sentiment and momentum in growth could put upward pressure on inflation and the Fed was concerned about knowing the difference between what was a temporary increase in inflation for example from tariffs. They didn't use that example but that's the implication or from other forces in the economy that might be more permanent. So a period of uncertainty ahead according to the Federal Reserve guys and this is why they have telegraphed they will be slowing the pace of easing in the coming year.