Everbright Sun Hung Kai: Fed December Vote May See First-ever 6:6 Tie
BlockBeats News, November 24th, research firm Capital Economics analysts stated that the consensus-driven Federal Reserve has recently shown an increasingly serious split, to the point where the next month's rate-setting meeting may face a "possible deadlock."
In a report last Friday, Capital Economics' economists attempted to gauge the voting. Four regional Fed presidents on the committee — Collins, Goolsbee, Mussallem, and Schmidt — expressed doubts about the proposal to cut rates next month, even "completely opposed." Fed governors Ball and Jefferson also sounded cautious. In the dovish camp, three Fed governors appointed by Trump — Bauman, Milan, and Wall — have been calling for rate cuts, and Williams' statement last Friday sounded like he might join them.
Capital Economics stated: "In this calculation, there are still only four votes in favor of rate cuts, and six votes against. But considering Williams and Fed Chair Powell often share the same views (and Governor Lisa Cook usually votes in line with Powell), we may see a six-to-six tie." Robert Eisenbeis, who previously served as research director at the Atlanta Fed, told Fortune earlier this year that in the event of a tie, the federal funds rate would remain unchanged.
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