PANews reported on November 12th that, according to Jinshi, Nick Timiraos, a well-known Fed mouthpiece, stated that internal divisions within the Federal Reserve have cast a shadow over the path to interest rate cuts. Such a level of disagreement is unprecedented during Fed Chairman Powell's nearly eight-year tenure. Officials are divided on whether persistent inflation or a sluggish labor market poses a greater threat, and even restoring official economic data may not bridge the gap. While investors believe the likelihood of a rate cut at the next Fed meeting remains high, this division complicates plans that seemed feasible less than two months ago. Whether officials will cut rates again at the December meeting is still uncertain. New data might quell the debate. Some officials believe the December and January meetings are largely interchangeable, making the year-end rate cut seem somewhat deliberate. Another possibility is that a December rate cut will be accompanied by guidance, setting a higher threshold for subsequent rate cuts.PANews reported on November 12th that, according to Jinshi, Nick Timiraos, a well-known Fed mouthpiece, stated that internal divisions within the Federal Reserve have cast a shadow over the path to interest rate cuts. Such a level of disagreement is unprecedented during Fed Chairman Powell's nearly eight-year tenure. Officials are divided on whether persistent inflation or a sluggish labor market poses a greater threat, and even restoring official economic data may not bridge the gap. While investors believe the likelihood of a rate cut at the next Fed meeting remains high, this division complicates plans that seemed feasible less than two months ago. Whether officials will cut rates again at the December meeting is still uncertain. New data might quell the debate. Some officials believe the December and January meetings are largely interchangeable, making the year-end rate cut seem somewhat deliberate. Another possibility is that a December rate cut will be accompanied by guidance, setting a higher threshold for subsequent rate cuts.