AiCoin
AiCoin|Nov 22, 2025 03:58
**[Federal Reserve Internal Divisions Intensify, May Impact Future Rate Cut Decisions]** Nick Timiraos, known as the "Fed's mouthpiece," wrote that Trump is expected to appoint a new Federal Reserve Chair next May, which could lead to a significant drop in interest rates. However, opposition within the Fed to a rate cut in December is growing, potentially affecting the realization of this plan. Powell faces the most severe internal resistance of his term at the December meeting, whether he chooses to hold rates steady or cut them. This division may persist into next year. For over 30 years, Federal Reserve Chairs have sought broad consensus in interest rate decisions, but the December meeting may see three or more dissenting votes, with monetary policy outcomes potentially decided by a narrow majority. Evercore ISI economist Krishna Guha stated that the Fed's decision-making process is at risk of breaking down, and the committee may face serious fragmentation.
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