Fed Signals Uncertainty Ahead As Rate Cut Rift Deepens

Benzinga

The Fed is set to deliver a third straight rate cut, but internal divisions and missing data from the shutdown make further reductions unlikely. Powell faces a split committee, with projections expected to show disagreement over 2026 policy as Trump weighs a replacement.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03The Federal Reserve is poised to approve a third straight interest rate cut on Wednesday,

00:07but divisions inside the central bank make additional reductions unlikely, according to

00:11Bloomberg. Officials disagree on whether policy is already neutral after a 1.5-point decline over

00:1715 months, a disagreement that could lead to a split decision with multiple dissents.

00:23Powell faces a tougher path to consensus because the government shutdown delayed key labor

00:27and inflation data until mid-December. The upcoming economic projections are expected

00:32to highlight ongoing divisions, with officials split between stopping rate cuts at this week's

00:37level or supporting at least two more in 2026. Investors are watching for Trump's upcoming

00:43choice to replace Powell, with Kevin Hassett viewed as the leading contender.

00:48For all things money, visit Benzinga.com.

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