Fed's Divisions Persist into 2026
Update: 2025-12-23
Description
The Federal Reserves deep divisions, shaped by Trumps economic moves and sticky inflation, are set to linger into 2026. Despite three interest rate cuts this year, economists warn a new chair might struggle to herd a divided group, especially if pushing cuts against holdouts. New data trickles in slowly, with unemployment at 4.6% and inflation readings possibly understated. The Fed plans just one more cut in 2026, but divisions look here to stay, keeping the Feds path bumpy yet tilted toward easing.
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