Analysis: The internal conflicts within the Fed may tear apart asset pricing, and interest rate cuts could become a possible path for compromise.

Odaily News The Fed has often been criticized for pursuing consensus too aggressively, and now its interest rate decisions may result in a series of dissenting votes. This will not only weaken the effectiveness of policy communication but also intensify external doubts about its independence. Regardless of the final outcome, it is highly likely that there will be multiple opposing votes in this month's meeting. Among the 12 voting members of the Federal Open Market Committee (FOMC), as many as 5 have expressed opposition or skepticism towards further rate cuts, while 3 core members of the board support rate cuts. Analysts believe that if the FOMC policy statement and Powell's post-meeting press conference include language about a potential pause in monetary easing, rate cuts may become a possible path to compromise. In the last statements before policymakers enter the “communication blackout period,” rate cut skeptics claim to remain open, while Waller, who has been advocating for rate cuts since noticing a slowdown in the job market last summer, stated that whether to continue rate cuts after December will depend on the large amounts of data that statistical agencies will fill in after the record 43-day government shutdown. (Jin10)