The Federal Reserve's three consecutive rate cuts come to an end: internal divisions laid bare, Powell caught in the 'stagflation dilemma'

The Federal Reserve's dramatic rate-cutting saga that spanned the entire year finally reached a temporary conclusion on December 11! The benchmark interest rate was officially lowered by 25 basis points to 3.50%-3.75%, completing the third rate cut of the year, amounting to a total reduction of 75 basis points. From the market's reaction, this is considered a 'gift within expectations', but the internal divisions of the Federal Reserve have been thoroughly exposed, resembling a 'celestial argument'—the voting result of 9 in favor and 3 against marks the first appearance of three dissenting votes since 2019, highlighting the degree of division.

Interestingly, the dissenting votes were split into 'two factions': the newly appointed governor, Milan, feels that a 25 basis point cut is merely 'scratching the surface' and advocates for a direct cut of 50 basis points to be effective; while Goolsbee and Schmid stand on the opposing side, believing that rates should not be cut at this time and insisting on maintaining the original interest rate level. This division of 'some think it's too little, some think it's too much' has actually exposed the Federal Reserve's core dilemma: in the current economic environment, there is fundamentally no 'optimal solution', and any choice carries risks. $BTC #比特币VS代币化黄金