Capital Economics: Fed's December Vote Could See First-ever 6-6 Tie

BlockBeats News, November 24th, a research analyst at Capital Economics said that the Fed, usually consensus-driven, has recently shown increasingly serious divisions, to the point where the next rate-setting meeting "may hit an impasse."

In a report last Friday, Capital Economics' economists attempted to tally the votes. Four regional Fed presidents—Collins, Goolsbee, Mousalem, and Schmidt—have expressed doubts about cutting rates next month, even "strongly opposed." Fed governors Barr and Jefferson have also signaled caution. On the dovish side, three Fed governors appointed by Trump—Bauman, Milan, and Wall—have been consistently calling for a rate cut, and Williams' statement last Friday sounded like he might join their ranks.

Capital Economics said: "This way, there are only four votes in favor of a rate cut, and six votes against it. But considering Williams and Fed Chair Powell often share the same views (and Governor Lisa Cook usually votes in line with Powell), a six-to-six tie may occur." Robert Eisenbeis, who previously served as research director at the Atlanta Fed, earlier this year told Fortune magazine that in the event of a tie, the federal funds rate will remain unchanged.