The infighting within the Fed may tear apart asset pricing, and interest rate cuts could become a possible path of compromise.

The Fed is facing internal divisions, with five committee members expressing opposition or skepticism regarding interest rate cuts, which may result in multiple dissenting votes at this month's meeting. This phenomenon could undermine the effectiveness of policy communication and raise questions about its independence.

Analysts believe that a compromise may be reached through policy statements, and future interest rate cuts will depend on the data to be released soon. According to Odaily Planet Daily, the Fed is often criticized for overly pursuing consensus, and now its interest rate decisions may show a series of dissenting votes. This will not only weaken the effectiveness of policy communication but also intensify external doubts about its independence.

Regardless of the final outcome, it is highly likely that there will be multiple dissenting votes at this month's meeting. Among the 12 voting members of the Federal Open Market Committee (FOMC), the rate-setting body of the Fed, as many as 5 have expressed opposition or skepticism towards further rate cuts, while 3 core members of the council support the cuts. Analysts believe that if the FOMC policy statement and Powell's post-meeting press conference include a statement about "the possibility of pausing monetary easing in the future," a rate cut may become a possible path to reach a compromise.

In the final statement before policymakers enter the "communication blackout period", those skeptical about interest rate cuts claim to still maintain an open attitude; however, Waller, who has been advocating for rate cuts since noticing a slowdown in the labor market last summer, stated that whether to continue cutting rates after December will depend on the large amount of data that statistical agencies will complete after the record 43-day government shutdown.