FT News Briefing Fed cuts rates amid growing division
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Dec 11, 2025 
Join Claire Jones, U.S. economics editor, and Chloe Cornish, Gulf business correspondent, as they dive into the Federal Reserve's recent rate cut. Claire discusses the divided committee and the tug-of-war between inflation control and employment goals. Meanwhile, Chloe highlights the UAE’s IHC conglomerate, detailing its swift ascent and the royal family's dominance in Abu Dhabi’s economy. They also tackle Oracle’s disappointing earnings and investor jitters about AI spending. A fusion of economics and regional insights awaits!
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Fed Cut Exposes Policy Divide
- The Fed cut rates because the labour market has softened even though inflation remains above target.
- The decision exposed an unusual split among FOMC members about weighing employment against price stability.
Dot Plots Reveal Deep Divergence
- Powell's consensus-building has weakened as the Fed's mandates clash, producing rare dissents.
- Dot plots show members split: some expect higher rates by 2026 while others forecast substantial cuts.
Dot Plots Less Reliable Ahead Of Chair Change
- Dot plots are a poorer guide now because of limited data from the government shutdown and an impending change of Fed chair.
- The next chair is expected to tilt dovish, so future projections may understate likely cuts.