Particle.news
Download on the App Store
3 ARTICLES
·
2h ago

Fed Unity Frays as Officials Split on December Rate Cut

A murky data picture has turned a once‑assumed December cut into a coin toss.

Federal Reserve Chair Jerome Powell leaves a press conference in Washington, DC, on October 29.
Image
Fed Chair Jerome Powell knocked back expectations of a December interest-rate cut in a press conference following the Oct. 29 FOMC vote.

Overview

  • Market pricing now puts roughly mid‑40% odds on a December move, down from near certainty weeks ago, according to CME FedWatch readings cited Nov. 14.
  • Hawkish voices including Boston’s Susan Collins, Kansas City’s Jeffrey Schmid, and St. Louis’s Alberto Musalem warn against easing without clearer inflation progress or a sharper labor slide.
  • Dovish officials such as Governor Stephen Miran argue borrowing costs are biting harder than believed and continue to advocate for deeper cuts, with support from Governors Michelle Bowman and Christopher Waller.
  • Chair Jerome Powell said a December cut is “far from it,” after an Oct. 29 decision that lowered the federal funds rate to 3.75%–4.00% and featured rare opposing dissents.
  • A prolonged shutdown deprived policymakers of key inflation and jobs data, and with releases resuming before the Dec. 9–10 meeting, Wall Street houses expect any easing path to be slower and to extend into 2026.