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.

If the Fed holds interest rates steady as a means of protecting against inflation, it risks a deeper slowdown of the labor market. On the other hand, by lowering rates to stimulate hiring, the Fed threatens to boost spending and worsen inflation.

The Fed has cut interest rates for the third time in a row at December's meeting. Fed members were the most divided they've been all year.

Federal Reserve Bank of Cleveland President Beth Hammack said she would prefer interest rates to be slightly more restrictive to keep putting pressure on inflation, which is still running too high.

Fed officials explained their opposition to the central bank’s decision this week to cut interest rates by a quarter of a percentage point.

Bitcoin traders wondering what the digital currency’s price will do next should closely monitor policy developments, according to several analysts.

Long-term Treasuries fell, lifting the 30-year bond’s yield to the highest level since early September, as the implications of this week’s Federal Reserve interest-rate cut and policy stance filtered into the market.

Kansas City Federal Reserve President Jeffrey Schmid said he dissented against the central bank's quarter point rate cut this week because inflation is "too hot" and monetary policy should remain modestly restrictive to keep it in check.