Fed on the Brink of Impasse as Capital Economics Projects 6-6 Vote on Next-Month Rate Cut, Powell-Williams Alignment in Focus

COINOTAG News notes that Capital Economics flag a widening rift inside the Fed ahead of the next policy decision. Four regional presidents—Collins, Goolsbee, Mousalem, and Schmidt—expressed doubt about a rate cut, with some opposing it. Governors Barr and Jefferson are cautious, while three Trump-appointed governors—Bauman, Milan, and Wall—have pressed for easing. Williams’s remarks hint at a dovish tilt. Net effect: only four votes in favor of a rate cut versus six against, making a six-to-six tie plausible if Williams aligns with hawks.

From a crypto-angle, this Fed gridlock matters for liquidity and risk premia across digital assets. A hold could dilute near‑term clarity on policy, affecting Bitcoin and other tokens. Capital Economics cautions the stalemate would complicate rate guidance and sentiment. The view is echoed by Robert Eisenbeis, who has said a tie would likely leave the federal funds rate unchanged, underscoring crypto traders’ sensitivity to policy signals.

Source: https://en.coinotag.com/breakingnews/fed-on-the-brink-of-impasse-as-capital-economics-projects-6-6-vote-on-next-month-rate-cut-powell-williams-alignment-in-focus