"The comments from Collins, a cerebral, low-key member of the policy committee - she has never dissented from an FOMC decision - show the depth of opposition to further rate cuts in the near term. Traders upped their odds that the Fed will stand pat next month. The odds of a December rate cut were at about 54% on Thursday, per the CME FedWatch tool - down from 63% on Wednesday and 96% a month ago."
"Leave rates unchanged, and there could potentially be three governor dissents (Michelle Bowman, Stephen Miran, and Christopher Waller), unprecedented in modern times. Cut rates, and there could also be significant dissent, including from Collins, Kansas City Fed president Jeffrey Schmid (who dissented from last month's rate cut), St. Louis Fed president Alberto Musalem, or others who have kept their cards closer to their vests."
The Federal Reserve faces pronounced internal splits over policy direction, with Trump-appointed governors pushing for further rate cuts while several colleagues worry about elevated inflation. Collins, a cerebral, low-key policymaker who has never dissented, voiced strong opposition to near-term cuts. Market odds for a December rate reduction have fallen from about 96% a month ago to roughly 54%, reflecting increased expectations that the Fed may hold. Chair Jerome Powell confronts a damned-if-you-do, damned-if-you-don't choice amid a thin flow of economic data. Keeping rates unchanged could provoke up to three governor dissents; cutting could trigger significant dissent from other officials.
Read at Axios
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