As the September Fed meeting approaches, the divergence of opinions within the decision-making body is becoming increasingly apparent. This division may lead to intense debates and range-bound battles during the policy-making process.
On one hand, dovish members represented by Waller, Bowman, and Daly tend to favor larger interest rate cuts. Although Milan has not explicitly committed to supporting rate cuts, he may also lean towards this camp. These members believe that the current economic environment may require a more accommodative monetary policy to provide support.
On the other hand, hawkish members led by Harker, Bostic, Muthalam, and Schmidt continue to emphasize the risks of rising inflation. They are cautious about adopting loose policies, fearing that excessive rate cuts could trigger new economic issues.
Even if the final decision is to cut rates by only 25 basis points, there may still be instances during the meeting where both supporters and opponents raise objections. This internal division reflects the complexity of the current economic situation and the challenges decision-makers face in balancing inflation risks and economic growth.
This divergence also highlights the transparency and democratic nature of the Fed's policy-making process. Each member has the opportunity to express their views, and the final decision will be based on thorough discussion and debate. However, this also means that the market may need to pay closer attention to the remarks of each member in order to better predict the future direction of policy.
Regardless of the final outcome, the Fed meeting in September will undoubtedly become the focal point of the financial markets, and its decisions will have a profound impact on the global economy.
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GateUser-26d7f434
· 4h ago
The Fed is really struggling.
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LiquidityHunter
· 8h ago
Silver is about to Get Liquidated.
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AirdropHunter
· 8h ago
The plot can still be more of a fall.
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SelfSovereignSteve
· 8h ago
The most prudent approach is to wait and see regarding interest rate cuts.
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SerNgmi
· 8h ago
The pessimists are right.
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NeverPresent
· 8h ago
It's hard to say whether to raise or lower interest rates.
As the September Fed meeting approaches, the divergence of opinions within the decision-making body is becoming increasingly apparent. This division may lead to intense debates and range-bound battles during the policy-making process.
On one hand, dovish members represented by Waller, Bowman, and Daly tend to favor larger interest rate cuts. Although Milan has not explicitly committed to supporting rate cuts, he may also lean towards this camp. These members believe that the current economic environment may require a more accommodative monetary policy to provide support.
On the other hand, hawkish members led by Harker, Bostic, Muthalam, and Schmidt continue to emphasize the risks of rising inflation. They are cautious about adopting loose policies, fearing that excessive rate cuts could trigger new economic issues.
Even if the final decision is to cut rates by only 25 basis points, there may still be instances during the meeting where both supporters and opponents raise objections. This internal division reflects the complexity of the current economic situation and the challenges decision-makers face in balancing inflation risks and economic growth.
This divergence also highlights the transparency and democratic nature of the Fed's policy-making process. Each member has the opportunity to express their views, and the final decision will be based on thorough discussion and debate. However, this also means that the market may need to pay closer attention to the remarks of each member in order to better predict the future direction of policy.
Regardless of the final outcome, the Fed meeting in September will undoubtedly become the focal point of the financial markets, and its decisions will have a profound impact on the global economy.