Federal Reserve's 'Civil War' Escalates, Powell May Struggle to Tame 'Hawks'
BlockBeats News, December 10: The Federal Reserve is facing its biggest internal division in recent years, and Powell faces a tough coordination task. The market expects the Fed to cut interest rates by another 25 basis points tonight, but Powell may avoid signaling further rate cuts in January to appease the hawks.
Bank of America believes Powell may suggest that another rate cut would only happen if the employment data is significantly weak, or emphasize that the benchmark interest rate is close to a neutral level.
Currently, 5 officials support a rate cut, 3 officials' stance is unclear, and 2 officials support keeping rates unchanged.
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