WSJ: Fed likely to hold rates amid growing internal dissent

The U.S. Federal Reserve is likely to hold its benchmark interest rate steady at the next Federal Open Market Committee (FOMC) meeting due to uncertainty stemming from the war in Iran, The Wall Street Journal reported. However, divisions within the Fed are widening as Chairman Jerome Powell's term approaches its end, with the potential for dissenting votes from some board members emerging as a key variable. The outlet noted that three governors appointed by President Donald Trump have been advocating for a rate cut, with two of them voting against the decision to hold rates at a recent meeting. There is a possibility that all three could collectively dissent in favor of a rate cut at the upcoming meeting. "The Fed has recently been shifting away from its consensus-driven decision-making structure toward one where disagreements are more openly expressed, a trend that could influence future policy decisions," the WSJ explained.