"A vocal contingent of monetary hawks - including several presidents of regional Fed banks - spent much of November making the case for holding rates steady and waiting for clearer evidence of labor market deterioration before cutting rates further. A similarly vocal contingent of doves - three Trump-appointed governors - made the case for cutting rates further to try to get closer to a neutral level that doesn't restrain activity, amid signs of job market weakness."
"The intrigue: In the final days before the Fed's self-imposed blackout, in which officials go quiet before a meeting, the outlines of a compromise were visible - a December rate cut paired with messaging that further adjustments in 2026 are uncertain. Williams said in a speech last month that he sees "room for further adjustment in the near term" of rates."
The Federal Open Market Committee likely will cut its interest rate target by a quarter point while signaling a high bar for future cuts. Monetary hawks, including several regional Fed bank presidents, argued in November for holding rates steady and awaiting clearer evidence of labor market deterioration before cutting further. Three Trump-appointed governors argued for additional cuts to approach a neutral rate amid job market weakness. Chair Jerome Powell, Vice Chair Philip Jefferson and New York Fed President John Williams appeared to straddle the middle, with Williams noting room for further near-term adjustment. Mary Daly endorsed a December cut; some voters signaled uncertainty about dissenting.
Read at Axios
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