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Fed Officials Split Over Rate-Cut Strategy
Fed policymakers remain divided on rate cuts as inflation stays sticky, reducing expectations for near-term easing and keeping yields elevated.
Federal reserve policymakers voiced differing views on the timing of future rate adjustments, underscoring internal debate about inflation persistence. Two regional presidents indicated skepticism about recent easing measures, emphasizing continued labor-market strength. Bond traders interpreted their comments as a signal that additional cuts may be delayed beyond expectations. Market odds for a December reduction have now fallen below 40%. Analysts said the communication gap highlights how difficult policy calibration remains in a late-cycle environment where growth is firm but inflation risks have yet to fully recede.