Future Federal Reserve meetings may see disagreements, increasing the risk of market volatility.
TL;DR
Future Fed meetings may see divided votes on interest rates, with up to five members opposing cuts and three supporting them, potentially weakening policy signals and increasing market volatility.
Tags
According to ChainCatcher, citing Jinshi, the Federal Reserve may face a series of divided votes on interest rates in the future, which could weaken the effectiveness of its policy signals. 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. Threadneedle fixed-income investment manager Al-Hussein stated that a 7-5 split would create chaos in the interest rate market. BNY Mellon Investment Management believes that the policy outlook for 2026 will be influenced by political economy.