Barclays: Expects a 25 basis point rate cut by the Fed in December, but internal disagreements exist.

According to a report by Jinshi Finance, Barclays economists stated in a report that the probability of the Federal Reserve cutting interest rates by 25 basis points at its December 9-10 meeting is very high, with the market pricing in a probability of over 80%. They expect Powell to support the rate cut, but there may be strong internal divisions, with at least two hawkish dissenting votes from Schmid and Mussallem. Barclays also noted that the statement and the chairman's press conference will be slightly hawkish, suggesting a possible pause in action in January unless labor market conditions deteriorate more than expected.