The Federal Reserve's "internal war" escalates, and Powell may struggle to rein in the "hawks"
BlockBeats News, December 10, the Federal Reserve is experiencing its largest internal division in recent years, with Powell facing a difficult coordination task. The market expects the Federal Reserve to cut rates by another 25 basis points tonight, but Powell may avoid signaling further rate cuts in January next year to appease the hawks.
Bank of America believes Powell may suggest that only significantly weaker employment data would prompt another rate cut, or emphasize that the benchmark interest rate is already close to a neutral level.
Currently, five officials support a rate cut, three officials' positions remain unclear, and two officials support holding steady.
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