Fed Minutes Reveal Policy Rift, AI's Economic Disruption Amid Rate Path Debate

• US Federal Reserve's January meeting minutes show division on interest rate path despite holding rates steady.
• Almost all members supported keeping the federal funds rate at 3.50–3.75 percent, but debate fractured on future moves.
• Some officials favored further cuts if inflation declines, while others argued for restrictive policy longer.
• Explicit discussion of potential rate hikes emerged, reflecting concerns if inflation remains above target.
• AI's impact on productivity and potential financial instability was a key discussion point, noting tech valuations and debt.