🚨📉 FED MINUTES OUT: RATE CUT DRAMA UNFOLDS 🇺🇸🔥
The latest Federal Reserve meeting minutes are out — and they reveal a deep split inside the Fed 👀
Policymakers are torn between resurgent inflation risks 📈 and a cooling labor market 🧑💼❄️. This clash will shape interest rate decisions heading into 2025–26.
💡 What happened?
• The Fed delivered its 3rd rate cut of the year, bringing rates to 3.50%–3.75%
• 3 out of 12 officials dissented, showing clear internal disagreement
• Powell tried to balance both sides, aiming to protect jobs while keeping inflation in check
📊 Key takeaway from the minutes:
Most officials still fear inflation isn’t fully defeated, but they’re also watching labor risks closely.
👉 If inflation keeps moving toward the 2% target, more rate cuts are on the table.
🔮 2026 outlook: Fed vs Market
• Fed’s dot plot: Only 1 rate cut expected in 2026
• Market disagrees 👇
– 50%+ chance of a 25bps cut by March 2026
– ~6.5% chance of a 50bps cut (CME FedWatch)
⏰ What’s next?
• Jan 27–28: Next Fed meeting
• Powell’s successor may be announced soon 👀
🧠 Top names in play:
• Kevin Warsh – policy discipline, balance sheet cuts
• Kevin Hassett – pro-growth, looser policy, faster rate cuts
📌 Bottom line:
Fed policy is at a crossroads — and markets are positioning early.
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