星球日报|12月 10, 2025 19:14
**["Fed Mouthpiece": Three Rate Cuts Fail to Resolve Internal Disputes, Beware of "Stagflation Risk"]**
Odaily Planet Daily reports that Nick Timiraos, known as the "Fed Mouthpiece," recently published an article stating that Federal Reserve officials have cut rates for the third consecutive meeting. However, concerns over inflation and the labor market remain significant, and there are unusual divisions within the Fed. As a result, officials have hinted that their willingness to continue cutting rates is low.
Recent public comments by Fed officials reveal severe disagreements within the committee, to the extent that the final decision may depend on how Fed Chair Jerome Powell wishes to proceed. Powell's term is set to expire next May, meaning he will only preside over the next three rate-setting meetings.
Persistent price pressures coupled with a cooling labor market present the Fed with an unpleasant trade-off, a situation it hasn't faced in decades. During the so-called "stagflation" period of the 1970s, when officials faced similar dilemmas, the Fed's stop-and-go approach allowed high inflation to become deeply entrenched.
Jonathan Pingle, Chief U.S. Economist at UBS, stated: "As rates approach neutral levels, with each rate cut, you lose more supporters. You need data to motivate those participants to join the majority in favor of rate cuts." (Jin10)
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