The upcoming Federal Open Market Committee meeting is shrouded in uncertainty as analysts at Capital Economics have highlighted growing divisions within the central bank. Their report reveals a potential deadlock, with four regional Fed presidents—Collins, Goolsbee, Mester, and Schmid—expressing reservations about a rate cut next month, while Governors Barr and Jefferson are cautious. On the other side of the spectrum, three Fed governors appointed by President Trump—Bowman, Milan, and Waller—are pushing for a rate cut. Williams’ recent comments suggest he may join their ranks. Capital Economics suggests that despite the potential deadlock, a six-to-six tie could result in the federal funds rate remaining unchanged due to likely alignment between Fed Chair Powell and Governor Lisa Cook.