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Fed's Powell Navigates Divided Committee Ahead of Rate Cut

12/8/2025

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Summary

Story summary

Federal Reserve Chairman Jerome Powell faces a divided committee as the Fed prepares for a meeting this week, with analysts forecasting a rate cut.
Powell may adopt a hawkish tone to appease both dovish and hawkish members.
Bank of America suggests Powell could signal further job-market weakening is needed for a January rate cut.
Recent data have shifted market sentiment toward a December rate cut, Morgan Stanley reversing its stance.

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Story summary

Federal Reserve Chairman Jerome Powell faces a divided committee as the Fed prepares for a meeting this week, with analysts forecasting a rate cut.
Powell may adopt a hawkish tone to appease both dovish and hawkish members.
Bank of America suggests Powell could signal further job-market weakening is needed for a January rate cut.
Recent data have shifted market sentiment toward a December rate cut, Morgan Stanley reversing its stance.