Analysis: Fed Rate Cut Almost a Certainty, Market Focuses on Voting Divisions and Powell's Language
BlockBeats News, December 8th. This week's Federal Reserve interest rate meeting is expected to be one of the most controversial meetings in years. Investors are watching closely to see the extent of the policymakers' disagreement on rate cuts and the signals Chair Powell will release regarding the future path.
Asset management firm Janus Henderson believes that, in the long term, the December meeting will not have a significant impact on the market. There may be some short-term volatility, but the actions in the first half of 2026 will be more important than those in December.
Trust company Wilmington Trust believes that the market has already largely digested the Fed's rate cut actions, and the real key is the Fed's policy guidance. They expect the Fed to be very cautious, emphasizing dependence on economic data. Some observers believe that the probability of a Fed rate cut is not as high as the market implies, and they are more concerned about Powell's statements and the closeness of the policy vote.
Nomura economists point out that nothing is certain at the moment, and the market underestimates the risk of the Fed choosing not to cut rates in December. The interesting question will be how many dissenting votes there will be if a rate cut decision is made. With the rotation of four regional Fed presidents, their stances will reveal how much independence they intend to maintain and how much pressure they will exert on the Fed. (Jinshi)
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