Fed Officials Split Over Risks to US Economy Going Into 2026 (2)

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. Two more emphasized risks to the labor market instead.

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