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The Fed is cracking at the seams before the December meeting (WSJ)
One of the most acute conflicts in the entire eight-year leadership of Jerome Powell is flarning up in the department.
What’s happening:➤ « Hawks»
demand a pause - they believe that inflation is gaining strength again, and business is ready to shift tariff costs to consumers.
➤ «Pigeons»
are afraid of recession - the labor market is weakening, employment is almost not growing.
➤ Due to the shutdown, the government stopped publishing key data, and each camp now reinforces the position with «private sources» and rumors.
Jerome Powell had to publicly state that the December rate cut is far from being resolved.
Against the background of simultaneous inflation growth and employment stagnation, the United States is immersed in a classic
stagflation scenario - the consequences of Donald Trump’s tariff and migration policy.
Investors are still betting on
a rate reduction, but disagreements within the Fed are already felt more strongly than in the whole of 2025.
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Market expectations (rate #Fed):- December 10: decrease by 25 b.p. to 3.50-3.75%.
- January 28, 2026: PAUSE.
- March 18, 2026: decrease by 25 b.p. to 3.25-3.50%.
- April 29, 2026: PAUSE.
- June 17, 2026: PAUSE.
- July 20, 2026: decrease by 25 b.p. to 3.00-3.25%.
@Сryptoz ₿