FOMC minutes: Most Fed policymakers believed 25 bps cut was needed

• The Federal Reserve's meeting minutes showed most policymakers saw 25 bps cut warranted.
• Policymakers were generally more concerned about risks associated with trade tensions.
• The US Dollar Index largely ignored the meeting minutes.

According to the minutes from the Federal Open Market Committee's (FOMC) September 17-18 monetary policy meeting, most policymakers believed that a 25 basis points rate cut was needed citing economic outlook, risk management and inflation objectives.

The US Dollar Index largely ignored the statement and was last flat on the day at 99.12. Below are some other key takeaways as reported by Reuters.

"Several participants said statistical models on the likelihood of a recession in medium-term had increased notably in recent months."

"Policymakers generally more concerned about risks associated with trade tensions, geopolitics and global economy."

"Although readings on labor markets and overall economy strong, clearer picture had emerged on weakness in investment, factories and exports."

"A couple of policymakers preferred a 50 basis point cut and stressed that forward guidance might also be needed."

"Several policymakers favored keeping rates steady, saying baseline economic projection had changed very little and that uncertainties would not derail the expansion."

"A couple of policymakers said a rate cut might be too much insurance and could leave policy with less scope for future shocks."

"Several policymakers suggested giving more clarity on when the Fed will end the recalibration of rate policy in response to trade uncertainties."

"A few policymakers said markets see more future accommodation than they see as appropriate; might need to better align market expectations with policymaker expectations."

"Policymakers agreed recent money market developments implied the Fed should soon discuss appropriate level of reserve balances."

"A few policymakers noted the possibility of resuming trend growth of balance sheet to stabilize the level of reserves."

"Several policymakers suggested consideration of a standing repo facility as part of monetary policy implementation framework."