Part 2/11:
On December 10th, the Federal Reserve announced a 25 basis point rate cut, lowering the Federal Funds rate to between 3.5% and 3.75%. In isolation, this seems routine—the third cut within the year. However, the decision revealed unprecedented internal discord. Three Fed officials voted against the move, the highest dissent since September 2019, with additional non-voting members expressing reservations. This division underscores the challenge of balancing stubborn inflation — with core PCE inflation around 2.8%, above the Fed’s 2% target — against the desire to maintain economic stability.