According to BlockBeats, the upcoming Federal Reserve meeting is anticipated to be one of the most contentious in recent years, with investors closely watching the extent of disagreement among policymakers regarding interest rate cuts and the signals from Federal Reserve Chair Jerome Powell about future directions.
Investment management firm Janus Henderson suggests that while the December meeting may cause short-term market fluctuations, its long-term impact is minimal compared to actions expected in the first half of 2026.
Wilmington Trust, a trust company, believes that the market has largely priced in the Federal Reserve's rate cut actions, with the real focus being on the Fed's policy guidance. They expect the Fed to be cautious, emphasizing decisions based on economic data. Some observers argue that the likelihood of a rate cut is not as high as the market suggests, with more attention on Powell's statements and the closeness of the policy vote.
Economists from Nomura highlight that nothing is certain yet, and the market underestimates the risk of the Fed choosing not to cut rates in December. The number of dissenting votes, should a rate cut decision be made, will be of interest. With the rotation of four regional Federal Reserve presidents, their positions will reveal the extent of their independence and the pressure they intend to exert on the Fed.
