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The Federal Reserve's internal consensus mechanism is facing disintegration, and the prospect of interest rate cuts is uncertain

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2025-11-22 04:12:27
Nick Timiraos, the Fed's mouthpiece, wrote that Mr. Trump expected interest rates to fall sharply after appointing a new Fed chairperson in May. However, opposition to a December rate cut has grown within the Fed, with Mr. Powell facing the most serious internal resistance in his nearly eight-year tenure.
Krishna Guha, economist at Evercore ISI, said the decision-making process is breaking down and next year could see the committee sharply split, with three or more dissenting votes possible at the December meeting.
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