Federal Reserve "Civil War" Escalates, Powell May Not Be Able to Rein in Hawks

BlockBeats News, December 10th: The Fed is facing its biggest internal division in recent years, with Powell facing a difficult coordination task. The market expects the Fed to cut interest rates by another 25 basis points tonight, but Powell may avoid signaling further rate cuts in January to appease the hawks.

Bank of America believes Powell may suggest that another rate cut would only happen if the employment data significantly weakens, or emphasize that the benchmark interest rate is close to a neutral level.

Currently, 5 officials support a rate cut, 3 officials' positions are unclear, and 2 officials support maintaining the current rate.