**Major Disagreement Among Fed Members as December Rate Decision Approaches**
As the US government shutdown continues, the Federal Reserve (Fed) cut interest rates by 25 basis points in October, despite the lack of crucial economic data. Now, with the end of the lockdown, all eyes are on the Fed’s final interest rate decision for 2025, expected in December. Wall Street Journal reporter Nick Timiraos—often regarded as the Fed’s unofficial spokesperson—recently shared his predictions regarding the upcoming decision.
Timiraos, widely known as a Fed insider, reports that there is a deepening disagreement within the Fed about the possibility of a December interest rate cut. He notes that an unusual conflict has developed between the hawkish and dovish members of the Federal Reserve. According to Timiraos, in Jerome Powell’s nearly eight-year tenure as Fed Chair, such levels of division have rarely, if ever, been seen.
> “There is a rarely seen division among Fed members. Following the second interest rate cut at the end of October, the rhetoric of hawkish members has become even harsher. The hawks now believe that further rate cuts are risky,” Timiraos observed.
Some Fed officials support a rate cut, citing slowing inflation and the limited economic impact of tariffs. On the other hand, other members are concerned about persistently high (sticky) inflation and the continuing impact of tariffs, leading them to oppose further cuts. Timiraos argues that the government shutdown—and the resulting disruption in key economic data releases—has intensified the disagreement among Fed officials.
At his last press conference, Powell remarked, “A rate cut in December is not a certainty.” Timiraos points out that this statement was not intended as a direct message to the market, but rather as an attempt to highlight the internal division within the Fed.
With interest rates currently hovering around 3.75%–4%, financial markets continue to price in the possibility of a rate cut amidst this rare hawk-dove clash. According to the Fed Watch Tool, the probability of a 25 basis point cut stands at 63.4%, while the chance of the Fed holding rates steady is at 36.6%.
**Disclaimer:** This article is for informational purposes only and does not constitute investment advice.
https://bitcoinethereumnews.com/tech/journalist-dubbed-fed-spokesperson-speaks-out-on-feds-december-interest-rate-decision-unseen-in-8-years/
