Fed officials collectively took a hawkish stance overnight, which may further limit the space for interest rate cuts.

On November 14, Fed officials collectively adopted a hawkish tone overnight, suggesting that further rate cuts may be limited. Minneapolis Fed President Kashkari was the first to express that he does not support the Fed's rate cut decision in October, but remains cautious about the best course of action for the December meeting. The fundamental resilience of the U.S. economy is stronger than expected, and the Fed should have paused rate cuts at the October meeting. Fed's Harker stated that monetary policy needs to remain tight to curb inflation and bring it back to target levels. The dual mandate of the Fed concerning inflation and employment faces challenges, marking a difficult period for monetary policy. Harker also expressed no worries about the dollar's weakness, stating, “We started from a state of extreme dollar strength, so this year's weakening has largely brought the dollar closer to its theoretically fair value, making it more reasonable compared to other currencies.” Fed's Moussailem took a relatively moderate stance but still indicated that the room for further easing monetary policy is limited. Moussailem noted, “Looking ahead, we need to proceed with caution. I believe we need to continue applying pressure on inflation above target while providing some support to the labor market.”