December FOMC minutes show the Fed is worried short-term funding could seize up

2026-01-01 22:20:10

Source: CryptoNewsNet Original Title: December FOMC minutes show the Fed is worried short-term funding could seize up Original Link: https://cryptonews.net/news/finance/32215667/ The minutes from the Federal Reserve’s December 2025 policy meeting show officials paying close attention to a risk that rarely drives headlines but can rattle markets quickly: whether the financial system could quietly run short of cash even if interest rates barely move.

Released on Dec. 30, the minutes from the Dec. 9-10 Federal Open Market Committee meeting suggest policymakers were broadly comfortable with the economic backdrop. Investors largely expected a quarter-point rate cut at that meeting and anticipated additional reductions in 2026, and rate expectations changed little over the intermeeting period.

But the discussion extended well beyond the policy rate. The minutes repeatedly highlight signs that short-term funding markets—where banks and financial firms borrow and lend cash overnight to facilitate daily transactions—were becoming tighter.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.