The Federal Reserve is experiencing a significant internal divide over whether to proceed with a rate cut in December, according to a report by Wall Street Journal journalist Nick Timiraos. Some officials are concerned about persistent inflation and the impact of tariffs, advocating for a pause in rate cuts. In contrast, dovish members emphasize the importance of addressing weak employment and slowing demand.
The report highlights that the recent government shutdown has disrupted key economic data, exacerbating the split among decision-makers. Currently, interest rates are in the 3.75%–4% range, and while market expectations slightly favor a December rate cut, the Fed is witnessing a rare "hawk-dove standoff."
Federal Reserve Faces Internal Split Over December Rate Cut
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