The Federal Reserve (Fed) is facing a rare division among its members ahead of its December interest rate decision. Journalist Nick Timiraos, known for his insider insights into the Fed’s actions, revealed that disagreement regarding rate cuts has never been this pronounced during Jerome Powell’s eight-year tenure. tensions have escalated after the second interest rate cut in October, with hawkish and dovish members clashing over the optimal course of action. Timiraos further points out that while some officials believe rate cuts are necessary to mitigate inflation and the economic impact of tariffs, others argue for continued policy tightening due to persistent sticky inflation and tariff effects. The US government shutdown further complicated matters, as critical economic data release has been delayed. Despite these challenges, market participants remain uncertain about the Fed’s next move, with a 25 basis point rate cut currently priced in at 63.4% according to the Fed Watch Tool, while a hold is also favored by 36.6%. It remains unclear whether the Fed will proceed with a December rate cut or maintain the current policy stance.