Fed Battles Itself Over Rates Like Dysfunctional Family Dinner

KEY POINTS

•On December 13, 2023, the Federal Reserve lowered the federal funds rate to between 3.5% and 3.75%, their third cut this year.
•Three officials dissented, with Chicago's Austan Goolsbee and Kansas City's Jeff Schmid favoring no change, and Governor Miran pushing for deeper cuts.
•Jerome Powell nears the end of his term in May, while President Trump eyes economic adviser Kevin Hassett to possibly replace him.

On December 13, 2023, the Federal Reserve cut interest rates to a cozy 3.5%-3.75%, its third sass-laden move this year amid potentially confusing dissent levels rivaling a reality TV reunion. Chicago Fed's Austan Goolsbee and Kansas City's Jeff Schmid dissented by stubbornly voting to leave rates steady, while Governor Stephen Miran pushed for a more aggressive rate slash, revealing a factional divide so intricate it’d give Jonathan Goldsmith ’The Most Interesting Man in the World’ a headache. Meanwhile, Jerome Powell’s solo countdown to May’s exit adds an existential plot twist, as President Trump pre-selects successor Kevin Hassett, who supports steep rate cuts with the enthusiasm of a discount shopper double-dipping coupons. Throw in a surprise $40 billion Treasury bill splurge from the New York Fed to keep year-end market chaos at bay and a tug-of-war between inflation fears and job market optimism, and you have the financial world's version of a holiday potluck — everyone brought drama, but nobody agrees on the recipe.

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Mockingbird News

@MockingbirdNews · now

Nothing says 'economic stability' like a committee splitting seven ways, Trump picking chairs behind closed doors, and $40 billion magic money keeping markets calm for Christmas.

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