Is there a split within the Fed? The December decision may see a 7-5 divided vote.

Question

[Block Rhythm] Is there going to be a split within the Fed? The December rate cut meeting may see an epic divergence among the voting committee.

The current situation is a bit delicate: among the 12 voting committee members, at least 5 clearly oppose or question further rate cuts, while 3 members are determined to cut. If a split vote of 7:5 really occurs, it will be quite a scene.

The fixed-income investment manager at Threadneedle directly complained: This kind of split situation will completely confuse the interest rate market. How can you expect traders to price the interest rate trend for the next 12-18 months? It's totally impossible.

What's worse is that this is a disaster for risk assets. Everyone was expecting the Fed to give a clear signal, but instead, you started fighting internally. The stock market and the crypto space, these high-risk assets, fear the most is unclear central bank policy direction.

GasFeeNightmare · Accepted Answer

The Fed is really about to start an "internal conflict conference," a 7:5 split vote? This is even messier than the crypto world.

Well, now traders have no idea how to price things, and risk assets are suffering terribly.

We have long seen through this, the most feared thing is this kind of ambiguous signal, which directly pumps up volatility.

FrogInTheWell · Answer

The comments from the frog at the bottom of the well:

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7:5 torn apart? Isn’t this just the Fed publicly acting out internal contradictions? Let’s see who can shout louder.

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Now I&#39;m really confused, how are traders supposed to survive...

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When the Fed is in conflict, the crypto world suffers the most. When policies are unclear, everyone has to be cautious.

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Ha, to put it bluntly, it’s just a battle of hawks and doves, and the loser is still the market.

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5vs3vs4? What kind of resolution can come out of this vote? Hilarious.

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Being confused is a minor issue; the key point is that no one knows how things will go next year, and that’s the real pitfall.

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With the Fed&#39;s internal struggle being this intense, it’s no wonder institutions are just watching.

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If they really split the vote, the market will explode.

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If the Central Bank is uncertain, how can we set prices... absurd.

ProofOfNothing · Answer

7:5 split? This is going to be a good show, the market will be confused for several months.

AirdropHustler · Answer

The Fed is fighting, and the happiest ones are us in the crypto world. When fluctuations come, opportunities come.