Federal Reserve Mouthpiece: Whether to Cut Rates in December Will Face at Least 3 Opposing Votes
'Federal Reserve Mouthpiece' Nick Timiraos pointed out in an article
that Federal Reserve officials face a challenge
on how to resolve the divergence on interest rates
He listed the two factions within the Federal Reserve
One faction is more concerned about inflation issues
This group's size has recently expanded
It includes four regional Fed presidents with voting rights this year
and Fed governor Barr
Another faction of officials is more worried about the labor market
They include all three Fed governors appointed by Trump
They are concerned that their colleagues will overemphasize the risks of persistently high inflation
Which could lead to unnecessary risks of economic recession
And they believe that high inflation is still far off
Nick stated that, regardless, the December meeting
may have at least three people holding differing opinions
The three Trump-appointed officials will oppose maintaining interest rates
And if the Fed cuts rates by 25 basis points, the opposing votes will also reach at least three votes.