Fed Officials Divided on Further Cuts as Timiraos Outlines Policy Trade-Offs

Nick Timiraos reported on Dec. 11 that Federal Reserve officials delivered a third consecutive rate cut but remain split over whether inflation or the weakening labor market should be the greater priority. His report says recent public remarks highlight unusually sharp internal divisions, signaling limited support for additional easing. Timiraos noted that Chair Jerome Powell, whose term ends in May and who will oversee three remaining policy meetings, faces persistent price pressures alongside a cooling job market. UBS chief U.S. economist Jonathan Pingle said support for further cuts declines as rates near neutral and that additional data will be required to secure majority backing.