The minutes of the Federal Open Market Committee's September 18th meeting showed that "in order to help forestall some of the adverse effects on the economy that might otherwise arise, all members agreed that a rate cut of 50 basis points at this meeting was the most prudent course of action." Meanwhile, the central bank said that they would consider more options "closely" after the September meeting, but that all future actions depend on the economy and market developments. Given the improvements we saw in last Friday's NFP report, the most timely economic data could lead the FOMC to leave rates steady at the end of the month. Furthermore, there have been signs that price pressures are building via energy and food, and with the FOMC minutes showing that the bank "remained concerned" about inflation as a continued decline in the US Dollar could raise inflation risks, Bernanke & Co. may be hesitant to slash the fed funds rate again so soon.
For the full meeting minutes: