The Federal Reserve's December interest rate cut vote is in a "deadlock", and Cook, who is pressured by Trump, may become a key vote

Institutional analyst Neil Irwin said that the Federal Reserve is currently deeply divided on whether to cut interest rates next month, and a possible outcome of the vote would create a striking irony. If the three leading figures, Chairperson Powell, Vice Chairperson Jefferson, and New York Fed Williams, decide to cut rates, they will certainly have the support of the three Trump-appointed governors on the committee. But that would only give them six votes out of the 12 voting members. They need a seventh vote to get a majority. The four non-New York Reserve chairpeople who have voting rights in this meeting (Gulsby, Collins, Musallum, and Schmid) all expressed reservations about the rate cut. In that case, Powell could turn to two Biden-appointed governors to get his majority. One of them is Barr, who now appears to be very concerned about inflation and advocates caution. Therefore, there is a good chance that he will cast a "no" vote. That leaves only one other governor whom Powell can fight for a seventh vote. The official is highly concerned about the health of the labor market and is tight-lipped about the next policy move. That governor, of course, is Cook. The Supreme Court is scheduled to hear a case on Jan. 21 on whether President Trump, who has been trying to remove her since last fall, can fire her.