While the move to lower rates by half a percentage point was approved by a majority of the 12 voting members, the result was not unanimous. In fact, it was the first time that a governor dissented on an interest rate vote since 2005. 

The dissenting governor, Michelle Bowman, said she voted against the larger interest rate cut because she would have preferred a quarter-point decrease. She added in a speech to a bankers’ group in Kentucky that the bigger rate cut “could be interpreted as a premature declaration of victory on our price-stability mandate,” CNBC reported.

Minutes from last month’s meeting revealed that Bowman was not alone in her thinking. 

“Some participants observed that they would have preferred a 25 basis point reduction of the target range at this meeting, and a few others indicated that they could have supported such a decision,” the minutes read.

Several other participants apparently noted that a reduction of a quarter of a percentage point would be the more gradual way to go, and would allow policymakers to see how the economy evolved and act accordingly with their monetary restrictiveness. 

“A few participants also added that a 25 basis point move could signal a more predictable path of policy normalization,” the minutes read.

The Fed’s decision marked the first time it has cut rates since March 2020, during the pandemic, when it also cut by half a percentage point. Before then, rates had not been cut since the 2008 financial crisis. 

In announcing last month’s rate cut, Fed Chair Jerome Powell gave some credit to the Federal Open Market Committee’s approach.

“Our patient approach over the past year has paid dividends. Inflation is now much closer to our objective, and we have gained greater confidence that inflation is moving sustainably toward 2%,” Powell said during a press conference last month.

Powell framed the cut as a “recalibration” of its policy stance and said the Fed’s decision was aimed at equally taking into account its dual mandate to keep prices stable while shooting for full employment. 

Inflation has continued to slow, dropping last month to 2.4% year over year—its lowest point in three years, the Labor Department reported Thursday. The improved, although volatile, inflation rate could throw into doubt any hopes of another large rate cut coming before the end of the year, especially as the unemployment rate was still elevated at about 4.1% as of last month, despite a slight month-over-month improvement.

As for future rate cuts, Powell signaled last month that the Fed is not on a preset course.

“We will continue to make our decisions meeting by meeting,” Powell said.