The divergence in the upcoming meetings of the Fed may exacerbate the risk of market fluctuation.

On December 2, the Fed has sometimes been criticized for overly pursuing decision consistency, but in the future, there may be a series of dissenting votes on interest rate issues, which could weaken the effectiveness of its policy signals. Regardless of the outcome of this meeting, the likelihood of multiple dissenting votes is very high. Among the committee of 12 voting members, as many as five have expressed opposition or skepticism towards further rate cuts, while three members are in favor of a cut. Threadneedle fixed income investment manager Al-Hussein stated: “If a 7:5 split occurs, it will create chaos for the interest rate market trying to price a reasonable path for rates over the next 12 to 18 months. It will also be chaotic for risk assets seeking certainty in Fed policy.” (Jin10)