Fed Divisions Persist into 2026 Amidst Economic Uncertainty and Political Pressure
The Federal Reserve is expected to face continued internal divisions in 2026, mirroring the conflicts seen in 2025 between its mandates of maximum employment and stable prices. This dynamic, reminiscent of the stagflation era of the 1970s, led to significant disagreements on interest rate policy throughout the past year. While Fed Chair Jerome Powell managed to secure consensus for three rate cuts in 2025, a new chair may struggle to achieve similar unity if inflation remains high and the job market softens. Experts predict a challenging environment for consensus-building, with the possibility of the committee leaning towards rate hikes in...
