FED Divided as December Rate Cuts Hang in the Balance
The Federal Reserve's internal debate intensifies as December approaches, with policymakers sending conflicting signals on potential rate cuts. Susan Collins leads the cautious faction, arguing inflation remains too high and the labor market too strong for further easing. Meanwhile, New York Fed President John Williams sees room for a "near-term" adjustment, describing current policy as only "modestly restrictive."
This policy split reflects broader economic uncertainty. Williams contends the Fed could MOVE closer to neutral without endangering inflation progress, while Collins maintains policy already sits in an appropriately "mildly restrictive" zone. Hawks point to stubborn inflation drivers including tariffs, supply chain pressures, and resilient consumer demand as reasons to pause.
