December FOMC minutes show the Fed is worried short-term funding could seize up

Fed officials were focused less on rate moves and more on whether the financial system has enough cash to avoid sudden disruptions.\nWhat to know : Fed officials have grown increasingly focused on whether the financial system has sufficient cash to function smoothly, even if interest rates remain steady. The December FOMC minutes show concern that short-term funding stress can emerge quietly and trigger sudden volatility. The minutes outline steps aimed at preventing cash shortages before seasonal pressures intensify in early 2026.