2025-12-30 20:23:43

The minutes released by the Federal Reserve this week revealed a key signal — when deciding to cut interest rates this month, many officials actually had reservations about further easing policies. In other words, at the next rate meeting in January, continuing to cut rates may face significant opposition.

The root of the issue still lies in inflation. Price increases are proving to be much more stubborn than the Fed previously anticipated, directly making their decision to cut rates more difficult. Currently, economic data is also adding to policymakers' concerns — although consumer spending remains strong, driving economic growth, the unemployment rate is quietly rising. The tug-of-war between these two forces has put the Fed in a dilemma.

What's more interesting is that new economic data will be released next month. These figures are likely to change the thoughts of Fed officials before the January rate meeting. So, it’s too early to predict how things will unfold early next year; everything depends on the upcoming data performance.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
7
Repost
Share

Comment

0/400

not_your_keys

· 11h ago

Inflation really is a nightmare for the Federal Reserve, whether they cut rates or not, it's uncomfortable either way. --- Hawkish officials will definitely hold the line; the data is the real boss. Let's wait and see in January. --- Strong consumption and rising unemployment—when will this contradiction be resolved? --- Instead of guessing now, it's better to wait for next month's data; then everything will be clear. --- Inflation's stickiness is so strong that even the Fed is stunned. Had they known, they wouldn't have eased so quickly. --- Basically, it's a dilemma: continuing to cut to control inflation harms the economy, not cutting makes it cold; the multiple-choice question has turned into a life-or-death test. --- There will be a big show in January; betting that the data will be worse.

View OriginalReply0

LoneValidator

· 11h ago

Inflation is really hard to get past, and the Federal Reserve is now in a difficult position Cutting interest rates? Don’t get your hopes up, it might cause more arguments in January The data hasn’t been released yet, so anything said now is just talk, just wait for the slap Federal Reserve officials are a bit panicked this round; strong consumption and poor employment data—nobody feels good about this situation The key still depends on the data; everything else is just empty talk Consumer spending is holding on stubbornly, but the unemployment rate is climbing, which is quite interesting Inflation is very stubborn, and their predictions have once again failed, which is a habit In January, there will definitely be opposition to further easing, just waiting for the internal conflict to unfold Before the economic data is released, everything is just speculation; don’t be misled Next month’s numbers will decide everything; current guesses are purely gambling

View OriginalReply0

quiet_lurker

· 11h ago

Inflation is really the Fed's stranglehold; interest rate cuts can't go through Fed officials are fighting among themselves, and retail investors just have to guess blindly Data is king; everything before it comes out is pointless. We'll see the results in January Unemployment rising while consumption remains strong—this contradiction is a bit hard to believe, who would trust it? It's really a gamble on the data—who can predict what will happen next? With inflation so sticky, the expected wave of rate cuts might be in jeopardy The Fed's dilemma is quite obvious; it's clear they are also at a loss

View OriginalReply0

MevShadowranger

· 11h ago

Here are some vivid, realistic social interaction-style comments: **Comment 1:** Inflation really refuses to come down, the Fed is probably at its wit's end too **Comment 2:** With the unemployment rate rising so much, they want to cut rates again in January? Dream on, officials will definitely clamp down **Comment 3:** Honestly, it all depends on next month's data, anything else is just wishful thinking **Comment 4:** Consumer spending is strong but unemployment is rising—such a contradictory situation, the Fed is really hard to figure out **Comment 5:** Inflation has choked off rate cuts, this pace is making people a bit tense **Comment 6:** The January meeting is probably going to be chaotic, officials definitely won't all agree on a cut **Comment 7:** Is the prediction too early? Just wait and see, after all, data is the boss **Comment 8:** Prices are so stubborn, if the Fed tries to loosen policy again, they'll probably get criticized

View OriginalReply0

AirDropMissed

· 11h ago

The beast of inflation has really not been tamed yet, and the Federal Reserve is also being tortured quite badly. In January, they will probably have to look at the data to decide.

View OriginalReply0

UnruggableChad

· 11h ago

Inflation, this monster, is really hard to tame. The Federal Reserve is now caught between a rock and a hard place. --- A rate cut in January is now uncertain. Hawkish officials are about to make trouble, but data is the ultimate arbiter. --- This is the aftermath of the rate hike cycle. Achieving a soft landing is not that easy. --- Unemployment rate is climbing while consumption remains strong. The indicators are indeed quite strange, no wonder the Federal Reserve is conflicted. --- Instead of guessing blindly, it's better to wait for next month's data to come out. Anyway, the market will move accordingly. --- Central bank officials blame inflation in the meeting minutes. They are right, but also quite helpless. --- It's a dilemma like this: it's impossible to satisfy everyone at the same time. Whoever is chosen will be criticized. --- It seems the Federal Reserve has no more cards to play. Continuing to loosen would be unfair to inflation, tightening would hurt the economy.

View OriginalReply0

PoolJumper

· 11h ago

The Federal Reserve is really struggling now; inflation just won't be suppressed no matter what. Continuing to cut interest rates in January feels uncertain; data is king. Basically, it's all about next year's data; it's too early to bet now. The quiet rise in the unemployment rate is quite upsetting, and strong consumption can't save the situation. They want to boost growth and control prices at the same time; the Fed's days are tough.

View OriginalReply0