U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Philippine Central Bank Signals Steady Interest Rates as Inflation Rises and Growth Slows 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
South Korea Vows Action to Stabilize Won as Currency Weakens Despite Strong Fundamentals 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
The upcoming Federal Reserve meeting is shaping up to be one of the most closely watched and contentious in years, with investors focused on how divided policymakers are over a potential interest-rate cut and the signals Chair Jerome Powell may send about the path ahead. Five of the 12 voting members of the Federal Open Market Committee have expressed skepticism toward additional easing, while three members of the Board of Governors support a cut. Such internal division is rare—the FOMC has not seen three or more dissents since 2019, and it has occurred only nine times since 1990—raising the stakes for next week’s decision.
Analysts say the divide underscores the Fed’s challenge of balancing its dual mandate of stable inflation and full employment. Recent economic data has offered mixed signals. Inflation, measured by the Personal Consumption Expenditures Price Index, aligned with expectations, and consumer sentiment strengthened in December. Meanwhile, jobless claims dropped to their lowest level in more than three years, reinforcing expectations for a rate cut, with markets pricing in an 84% chance of a quarter-point reduction, according to LSEG data.
The Fed last lowered rates on October 29, the second consecutive 25-basis-point cut this year. However, Powell unsettled markets by cautioning that a December cut was “not a foregone conclusion,” causing stocks to retreat. Still, many strategists argue the December move matters less than the Fed’s course in early 2026, noting that any immediate market impact will likely be modest since a cut is widely anticipated.
Complicating the decision is a significant data backlog caused by a 43-day government shutdown that delayed key employment reports. With missing household survey data and delayed unemployment figures, policymakers face heightened uncertainty. Some economists warn that markets may be underestimating the possibility that the Fed holds steady. Observers say the level of dissent—especially with several regional presidents rotating off the committee—will offer deeper insight into the Fed’s evolving internal dynamics and its direction under future leadership.
