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Divisions at the Fed that defined 2025 are expected to carry into 2026
The past year at the Federal Reserve saw the two sides of its congressionally mandated goals for maximum employment and stable prices in conflict — a situation not seen since the 1970s with stagflation. That dynamic caused divisions within the Fed also not seen in years, evidenced by dissents from opposing directions about interest rate policy. That's all expected to persist into 2026. Fed Chair Jerome Powell was able to forge consensus across a divided central bank to cut interest rates three times this year, noted Matthew Luzzetti, chief US economist for Deutsche Bank. But a new Fed chair might find it more ... (full story)
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