Powel & Co. are having trouble reading the room. After nearly 8 years of relative consensus, the Federal Reserve is now split down the middle on what actually matters more—stubborn inflation or the crumbling job market. And here's the kicker: even fresh economic data isn't healing this divide.
Investors are still betting on a rate cut at the next meeting, but behind the scenes? It's way more complicated than anyone thought just two months ago. Some officials want cuts NOW to save employment. Others say "pump the brakes" because inflation's still lurking.
The disagreement is so bad it's making plans that looked locked in suddenly look shaky. Markets don't like uncertainty, and right now the Fed is serving it up in spades.
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The Fed's Internal Drama Just Got Messier
Powel & Co. are having trouble reading the room. After nearly 8 years of relative consensus, the Federal Reserve is now split down the middle on what actually matters more—stubborn inflation or the crumbling job market. And here's the kicker: even fresh economic data isn't healing this divide.
Investors are still betting on a rate cut at the next meeting, but behind the scenes? It's way more complicated than anyone thought just two months ago. Some officials want cuts NOW to save employment. Others say "pump the brakes" because inflation's still lurking.
The disagreement is so bad it's making plans that looked locked in suddenly look shaky. Markets don't like uncertainty, and right now the Fed is serving it up in spades.