2025-12-31 06:27:51

December Meeting Minutes Show the Fed Has Deep Divisions Over Rate Cuts in December, Despite the Final Outcome of 9–3 to Cut by 0.25%, Bringing the Rate to 3.5%–3.75%

🔹 Even some officials supporting a cut admit the decision was a close call and they could have kept rates unchanged

🔹 Major Disagreements
— One side wants to support the labor market
— The other worries inflation is still above the 2% target
🔹 The “Dot plot” indicates the Fed expects very slow cuts, about once in 2026 and once in 2027, bringing rates close to 3%

🔹 The Fed believes President Donald Trump’s tariffs are putting pressure on inflation, but most think the impact is temporary

🔹 Overall, the meeting minutes reflect what Fed Chair Jerome Powell shared earlier, so nothing surprising.
#Gate2025AnnualReportComing

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.