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Fed hawks could remain in the ascendancy, 15-19 December.
- The Fed cut rates as expected, by 25bps on Wednesday, but there now is a clear division within the Federal Open Market Committee (FOMC), and between its shaky consensus versus market expectations.
- Aside from the key policy announcements, the meeting statement for December contained a few other subtle yet important changes.
- Despite the dispersion of views on the FOMC, the median view on rates remains unchanged since September.
- Although Powell may be replaced as Chair by a potentially dovish pick by President Trump, that Chair will be just one of 12 voters.
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