Fed split on December rate decision

VTV.vn - The Fed has cut interest rates in two previous policy votes, amid signs that the US job market has weakened over the past summer.

Federal Reserve Governor Christopher Waller, who has emerged as a leading internal candidate to replace Fed Chairman Jerome Powell, said recently that his “reading of the data” led him to “support a rate cut” at the Fed’s December 10 vote “as a matter of risk management” – an issue that highlights divisions among Fed policymakers over whether to prioritize fighting inflation or supporting a weakening job market.

The Fed has cut interest rates in its previous two policy votes amid signs that the US jobs market has weakened over the summer. Mr Waller said the labor market “remains weak and near stagnant”, while September inflation showed “a relatively small impact from tariffs” – with expectations about what happens next for prices remaining “well anchored”.

However, the Fed Governor's remarks contrasted with those of other members of the Federal Open Market Committee (FOMC) - the central bank's interest rate-setting body.

Hardliners like Fed President Susan Collins, Jeff Schmid, and Governor Michael Barr argue that inflation—at 3%—is still too high, while growth remains surprisingly resilient. After the Fed’s last rate cut in October 2025, Mr. Powell said another rate cut in December 2025 was not “a foregone conclusion.”

Source: https://vtv.vn/chia-re-trong-fed-ve-quyet-dinh-lai-suat-thang-12-100251119085842169.htm