Federal Reserve Mouthpiece: Whether to Cut Rates in December Will Have at Least 3 Opposing Votes
"Federal Reserve Mouthpiece" Nick Timiraos pointed out in the article
that Federal Reserve officials face a challenge
of how to address the divergence in interest rates
He outlined the two factions within the Federal Reserve
One faction is more concerned about inflation issues
This group's size has recently increased
This includes four regional Federal Reserve presidents with voting rights this year
and Federal Reserve Governor Barr
The other faction is more worried about the labor market
They include all three Federal Reserve Governors appointed by Trump
They are concerned that their colleagues may overemphasize the dangers of persistently high inflation
Which could lead to unnecessary economic recession risks
And they believe that high inflation is still far off
Nick stated that, in any case, the December meeting
will likely have at least three dissenting opinions
The three officials appointed by Trump will oppose maintaining interest rates unchanged
And if the Federal Reserve cuts rates by 25 basis points, the opposing votes will also reach at least three votes