Fed's unofficial spokesperson "December FOMC vote will be very closely contested"

Nick Timiraos, a Wall Street Journal (WSJ) reporter who is called the unofficial spokesperson of the U.S. Federal Reserve (Fed), forecast that a fierce vote over whether to cut interest rates will take place at the December Federal Open Market Committee (FOMC) meeting.

Timiraos, on the 19th (local time), cited the recently released October Fed minutes on X (formerly Twitter), saying, "Differences of opinion among members over a December rate cut are clearly deepening," and "The December FOMC vote will be very closely contested."

According to the previously released minutes, some members indicated that a December rate cut would be appropriate, while others argued that holding rates unchanged through the end of the year was necessary, showing that opinions were sharply divided. Several members maintained opposition to a rate cut at this time, while conversely a majority of members assessed that policy easing would become inevitable over time.

Markets regard these remarks as a sign that internal conflict within the Fed is deepening more than expected and that uncertainty surrounding the December decision is widening.