The Federal Reserve is facing a planning dilemma ahead of the December meeting
According to BlockBeats, UBS highlighted a planning challenge for the upcoming Federal Reserve meeting. The December FOMC meeting is set to occur before the publication of two critical employment reports, which are essential for deciding on potential interest rate cuts. This situation has sparked discussions about the possibility that the Fed may postpone the meeting, originally scheduled for December 10, by a week to incorporate employment data into their decision-making process.
Historically, the Fed has adjusted meeting dates under special circumstances, such as in 1971 and 1974. The Federal Reserve Act provides for at least four FOMC meetings per year but does not rigidly specify the dates, allowing for some flexibility.
UBS notes that historically a single employment report has been sufficient to influence the direction of monetary policy. The current scenario presents the risk of missing two such reports. If the meeting is indeed postponed, it could increase political uncertainty but potentially improve the quality of the decision-making process.
