The Fed is really in a bit of a dilemma this time.

The internal division has now become distinctly polarized into two factions. On one side are the "inflation hawks," whose ranks have recently been growing—four regional Fed heads with voting rights this year, along with Governor Barr, are troubled by the CPI data, fearing that the fire of inflation could flare up again.

On the other hand? There are three former presidents' nominees on the board, who are more anxious about the job market. In their view, their colleagues are too obsessed with the threat of inflation, which could lead the economy into an unnecessary recession—additionally, they believe that high inflation is still a long way off.

The current situation is quite delicate: In the December interest rate meeting, regardless of the final decision, there will likely be opposing votes. If they choose to hold steady on the interest rate, then the three board members will definitely vote against it; if they really lower the interest rate by 25 basis points, the opposing voices will similarly not be less than three votes.

Such scenes of internal tearing are not common in the history of the Fed. The market is now also uncertain about which side to bet on and can only wait to see how this policy game ends.