Stock Market Investors May Get Bad News From the Federal Reserve This Week

分组1 - The Federal Open Market Committee (FOMC) is experiencing significant division among its members regarding interest rate policy, with some advocating for aggressive cuts while others oppose them [1][2][7] - The FOMC's next meeting on December 10 is expected to result in a 25-basis-point rate cut, with futures traders estimating a 87% probability of this outcome [6][10] - The FOMC's dual mandate focuses on maintaining stable prices and maximum employment, but current economic pressures, including tariffs, are pushing the economy towards stagflation [3][5][13] 分组2 - Stagflation is characterized by rising inflation, stagnant economic growth, and high unemployment, which poses a challenge for the FOMC's monetary policy tools [13][14] - Recent economic indicators show inflation has risen every month since tariffs were implemented, unemployment reached a four-year high in September, and hiring has slowed significantly [13][12] - If the FOMC's December projections indicate increased concern about stagflation, it could lead to negative market reactions, particularly in the stock market [15][11]