Fed Officials Divided on Rate Cut Despite Pressure from Trump

Bitget App

Trade smarter

Bitget

News

Markets

Fed Officials Divided on Rate Cut Despite Pressure from Trump

Bitget-RWA2025/11/24 23:20

By:Bitget-RWA

- The Fed faces internal division over December rate cuts, complicating Trump's push for lower borrowing costs amid conflicting economic signals. - New York Fed's Williams supports near-term rate adjustments, while Boston's Collins dismisses urgency, reflecting broader policy disagreements. - Trump's potential influence is limited by Fed dissent, with delayed inflation data and mixed labor market trends adding to decision-making uncertainty. - Global markets and geopolitical developments will shape investo

The Federal Reserve is approaching a crucial decision in December, as disagreements within the institution about a possible rate cut grow sharper, complicating President Donald Trump’s efforts to lower borrowing costs. New York Fed President John Williams has indicated openness to “short-term” changes to the federal funds rate, while Boston Fed President Susan Collins has minimized the need for immediate action, highlighting a deeper divide among policymakers.

This division highlights the difficulties

facing Chair Jerome Powell, who must balance mixed economic data and mounting political pressure as his term draws to a close.

The main issue is whether the latest economic indicators support additional rate cuts.

Williams, a prominent supporter of easier policy on the FOMC

, stated on Friday that lowering rates could help bring policy closer to a neutral level, a view shared by others favoring more accommodative steps. In contrast,

Collins pointed out that current financial conditions

serve as “a tailwind, not a headwind,” implying there is no urgent need to act.

The lack of updated inflation figures for October

-which have been postponed until December 18—along with inconsistent labor market data, adds to the uncertainty.

Trump, who has often challenged the Fed’s independence, may find his ability to sway policy limited by these internal disagreements.

The president has suggested appointing

a more loyal chair next May to push for deeper rate cuts, but the current discord among Fed officials indicates that even a change at the top may not ensure consensus.

Some experts caution that Trump might intensify

attempts to reduce the Fed’s independence if his preferred policies are blocked.

Fed Officials Divided on Rate Cut Despite Pressure from Trump image 0

Investors are watching the Fed’s Beige Book closely

, as it offers insight into regional economic trends ahead of the December gathering. At the same time,

international developments—such as the U.K.’s autumn budget

, central bank moves in New Zealand and South Korea, and Tokyo’s inflation data—will also influence market sentiment.

European stocks, for example, rose

on Monday, buoyed by hopes for a Fed rate reduction and progress in Russia-Ukraine negotiations.

The postponed release of October inflation numbers

has forced policymakers to rely on September’s data, which revealed ongoing price pressures despite earlier optimism about easing inflation.

Additionally, the U.S. Bureau of Labor Statistics

confirmed that the October inflation report will not be issued, making it harder to gauge recent trends.

As the Fed weighs its options, the broader economic outlook remains fragile.

U.S. private-sector growth picked up in November

, supported by expectations of lower rates and increased political stability after the government shutdown. However,

consumer confidence dropped to 51

in the University of Michigan’s November poll, approaching record lows and signaling persistent economic worries.

The results of the December meeting will have significant consequences, not just for American markets but for global financial stability as well. With the Fed caught between opposing policy views and outside influences, the direction ahead remains unclear—reflecting the complex dynamics shaping monetary policy in today’s unpredictable environment.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- DeFi faces $12B liquidity crisis with 95% capital unused, while Aerodrome Finance suffered DNS hijacking attacks exploiting front-end vulnerabilities. - Bitcoin's price drop below $90,000 triggered $1.425B ETF outflows, contrasting Harvard's $218M Bitcoin/gold investment as inflation hedge. - SEC accelerates crypto ETF approvals as Bitwise's XRP ETF launches, while Spark shifts focus to institutional infrastructure over retail apps. - Market turbulence highlights DeFi's security flaws and liquidity chall

Bitget-RWA•2025/11/25 06:46

Bitcoin Updates: Institutional Investments in Bitcoin Face Challenges from DeFi’s Unused Liquidity and Security Issues

Bitcoin News Update: Japan to Integrate Cryptocurrency with Conventional Finance in 2026 Reserve Requirement

- Japan's FSA will mandate crypto exchanges to hold reserves covering customer losses from hacks or breaches via 2026 legislation. - Reserve amounts will depend on trading volumes and historical risks, with insurance allowed to offset obligations. - The move aligns with global crypto regulations like EU's MiCA and aims to treat digital assets as formal financial products. - While enhancing investor protection for Japan's 12M crypto accounts, critics warn smaller exchanges may struggle with compliance costs

Bitget-RWA•2025/11/25 06:46

Bitcoin News Update: Japan to Integrate Cryptocurrency with Conventional Finance in 2026 Reserve Requirement

DASH drops 22.6% over the past week following insider stock sales

- DASH fell 22.6% over seven days amid insider sales and tax-related share surrenders. - Executives Adarkar and Sherringham sold shares via SEC-approved 10b5-1 plans through Morgan Stanley . - Directors Fang and Tang surrendered 2,505 shares ($491k total) to cover tax liabilities from equity compensation. - Insider activity reflects routine compliance measures, not bearish sentiment, as DASH approaches earnings release.

Bitget-RWA•2025/11/25 06:40

DASH drops 22.6% over the past week following insider stock sales

Stablecoin Market Exceeds $280B as ECB Warns of Potential Systemic Risks

- Stablecoin market exceeds $280B, driven by regulatory clarity and institutional adoption, capturing 8% of crypto assets. - ECB warns of systemic risks from stablecoin concentration, de-pegging events, and mass redemption "runs" threatening global markets. - USDC overtakes USDT in onchain activity due to regulatory alignment, with Circle's market cap rising 72% YTD to $74B. - ECB calls for global regulatory coordination to address cross-border arbitrage gaps and prevent destabilizing retail deposit shifts

Bitget-RWA•2025/11/25 06:12