Federal Reserve officials adopted a hawkish stance overnight, potentially limiting the scope for further rate cuts.

According to Mars Finance, on November 14th, Federal Reserve officials collectively adopted a hawkish stance overnight, potentially limiting further room for interest rate cuts. Minneapolis Fed President Kashkari was the first to voice his opposition, stating that he did not support the Fed's October rate cut decision but remained cautious about the best course of action at the December meeting. He noted that the fundamental resilience of US economic activity was stronger than expected, and that the Fed should have paused rate cuts at its October meeting. Fed official Hamak stated that monetary policy still needs to remain tight to curb inflation and bring it back to the target level. The Fed's dual mandate on inflation and employment faces challenges, making this a difficult period for monetary policy. Hamak also expressed no concern about the weakening dollar, stating, "We started with an extremely strong dollar, so this year's weakness largely just brings the dollar closer to its theoretical fair value, making it more reasonable compared to other currencies." Fed official Mussaleem took a relatively dovish stance but still indicated limited room for further monetary easing. Mussaleem stated, "Looking ahead, we need to proceed cautiously. I think we need to continue to keep pressure on above-target inflation while providing some support to the labor market."