By Hamza Shaban

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With his signature diplomatic touch, Fed Chair Jerome Powell smoothed over Wednesday's dissents, chalking them up to respectful differences of opinion.

But the votes against this week's decision, coming from opposing directions, reflect fundamentally different perspectives in the Fed. And while there was broad agreement that the central bank should lower rates to end the year, the conflicting interpretations of where the US economy is headed will make it hard to find consensus.

Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments

Policy harmony will be even harder to come by when Powell, the purple tie-wearing conciliator, gives up his chair.

The fractured state of Fed policy means the next leader will hold even greater influence. Powell himself acknowledged that the decision to lower rates was "a close call."

"I can make a case for either side," he said.

The reasoning helped to explain that reasonable people can disagree, and that it's not hard for informed observers — whether it's Wall Street analysts or Fed members themselves — to argue either side of the rate-cutting decision.

But that also means the Fed's current majority is a fragile one.

If the economic data doesn't give central bankers the luxury of a clear reading, there's more room for chair influence as the Fed's decision making winds through divided votes.

Federal Reserve Chair Jerome Powell speaks at the Federal Reserve, Wednesday, Dec. 10, 2025, in Washington. (AP Photo/Jacquelyn Martin)