Fed spokesperson: Powell is not the biggest obstacle to interest rate cuts, the internal Consensus Mechanism of the Fed is on the brink of collapse.

BlockBeats news, on November 22, “Fed mouthpiece” Nick Timiraos wrote that Trump stated this week that he expects interest rates to drop significantly after appointing a new Fed chairman in May next year. However, opposition within the Fed to a rate cut in December is growing louder, which means his wish may be difficult to achieve. Whether Powell chooses to hold steady or cut rates in December, he faces the most serious internal resistance in nearly eight years of his term. This division may continue into next year, meaning that even with a new chairman, it does not guarantee more rate cuts. Some are concerned that if Trump cannot get his way, he may take more aggressive measures to undermine Central Bank independence in exchange for rate cuts. For more than 30 years, Fed chairs have sought to reach as broad a consensus as possible on interest rate decisions, with no decisions passed by a slim majority. However, the December meeting is likely to see three or more dissenting votes. Evercore ISI economist Krishna Guha stated that we are witnessing a breakdown in the decision-making process, and next year we may see the committee severely divided. (December) feels like a rehearsal for 2026. This suggests an unprecedented scenario: monetary policy outcomes may be decided by a very rare slim majority (rather than the traditional pursuit of broad consensus over many years), and the new chairman appointed by Trump may not always be able to control the situation.