On December 2nd, the Federal Reserve, sometimes criticized for its overemphasis on consistency in decision-making, may face a series of divergent votes on interest rates in the future, potentially weakening the effectiveness of its policy signals. Regardless of the outcome of this meeting, the likelihood of multiple dissenting votes is high. Of the 12 voting members on the committee, as many as five have expressed opposition or skepticism towards further rate cuts, while three governors support rate cuts.
"A 7:5 split would create chaos in the interest rate market, which is trying to price in a reasonable path for interest rates over the next 12 to 18 months," said Al-Hussein, fixed-income investment manager at Threadneedle. "It would also be chaos for risk assets seeking certainty about Fed policy." (Jinshi)
