logo

Analysis: Powell is not the biggest obstacle to rate cuts, the Fed's internal consensus mechanism is on the brink of collapse

By: theblockbeats.news|2025/11/22 12:15:58
0
Share
copy

BlockBeats News, November 22, "Fed Whispers" Nick Timiraos wrote that President Trump stated this week that he expects a significant rate cut after appointing a new Fed Chair next May. However, internal opposition to a rate cut in December within the Fed is growing, indicating that his wish may be hard to realize.

Whether Powell chooses to stay put or cut rates in December, he faces the most serious internal resistance in his nearly eight-year term. This division may persist into next year, meaning that even with a new Chair, more rate cuts are not guaranteed. Some are concerned that if Trump cannot get his way, he may take more aggressive measures to weaken the Fed's independence in exchange for rate cuts.

For over 30 years, Fed Chairs have sought as broad a consensus as possible on rate decisions, with no decisions being made by a slim majority. However, the December meeting is highly likely to see three or even more dissenting votes.

Economist Krishna Guha of Evercore ISI said we are witnessing a breakdown in the decision-making process, and next year we may see a severely divided committee. The (December) meeting feels like a preview of 2026. This implies an unprecedented scenario: monetary policy outcomes may be determined by a very rare slim majority (instead of the traditional pursuit of broad consensus over the years), and a new Chair appointed by Trump may not always be in control of the situation. (FXStreet)

-- Price

--

You may also like

Michael Saylor: Winter is Over – Is He Right? 5 Key Data Points (2026)

Michael Saylor tweeted yesterday “Winter‘s Over.” It is short. It is bold. And it has the crypto world talking.

But is he right? Or is this just another CEO pumping his bags?

Let us look at the data. Let us be neutral. Let us see if the ice has really melted.

WEEX Bubbles App Now Live Visualizes the Crypto Market at a Glance

WEEX Bubbles is a standalone app designed to help users quickly understand complex crypto market movements through an intuitive bubble visualization.

Polygon co-founder Sandeep: Writing after the chain bridge chain explosion

In three weeks, Drift, Hyperbridge, and KelpDAO were consecutively hacked, resulting in nearly $900 million in losses. Polygon's CEO wrote that the problem lies not with any single team, but with the "notary" style architecture shared by the entire industry—relying on one or two signers to stamp cro...

Major Upgrade on Web: 10+ Advanced Chart Styles for Deeper Market Insights

To deliver more powerful and professional analysis tools, WEEX has rolled out a major upgrade to its web trading charts—now supporting up to 14 advanced chart styles.

Morning Report | Aethir secures a $260 million enterprise contract with Axe Compute; New Fire Technology acquires Avenir Group's trading team; Polymarket's trading volume surpassed by Kalshi

Overview of Important Market Events on April 23

Why a Million-Follower Crypto KOL Chooses WEEX VIP?

Discover why top crypto KOL Carl Moon partnered with WEEX. Explore the WEEX VIP ecosystem, 1,000 BTC protection fund, and exclusive rewards for serious traders.

Contents

Popular coins

Latest Crypto News

Read more