Powell Expected to Deliver Hawkish Rate Cut as Fed Faces Deepest Internal Split in Years

Federal Reserve Chair Jerome Powell is expected to deliver a hawkish rate cut at this week's meeting as the central bank faces its most significant internal disagreement in recent years, Jin10 reports. Bank of America analysts said in a Dec. 1 report that Powell confronts the most divided committee in years and is likely to balance the anticipated cut with hawkish rhetoric at the press conference, similar to his October approach. JPMorgan Chief U.S. Economist Michael Feroli noted Powell is likely to emphasize rates are approaching neutral levels following this week's cut, with any additional easing contingent on substantial labor market deterioration rather than risk management considerations.