The Federal Reserve is experiencing significant internal discord regarding a potential interest rate cut in December, as opposition grows within the committee. This marks the most substantial resistance Chair Powell has faced in his eight-year tenure. According to Nick Timiraos, known as the 'Fed's mouthpiece,' the outlook for interest rates remains uncertain, with expectations of a significant drop after a new Fed chair is appointed by Trump in May next year.
Economist Krishna Guha from Evercore ISI highlighted the breakdown in the decision-making process, predicting a deeply divided committee in the coming year. The December meeting could see three or more dissenting votes, reflecting the increasing challenges in reaching a consensus on monetary policy.
Fed Faces Internal Division Over December Rate Cut Decision
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