Fed Officials Split Over Risks to US Economy Going Into 2026 (1)

Federal Reserve officials — including two who will become voters in 2026 — offered strongly opposing views Friday on what to do with interest rates, continuing a debate that will grip the US central bank into the new year.

Three policymakers focused in their comments on inflation risks, though one of them suggested he was advocating only a temporary pause to rate cuts to confirm inflation is subsiding. A fourth emphasized risks to the labor market as the bigger concern.

The remarks were the first since Wednesday, when the Fed cut its benchmark rate by a quarter percentage point for ...