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2025-09-15 18:55:58
Undercurrents within the Federal Reserve could derail the stock market's nine-day winning streak. ⑴ The market generally expects the Fed to cut interest rates by 25 basis points this week, arguing that the current slowdown in employment is a greater concern than runaway inflation. However, data suggests that this policy meeting could see the most significant disagreement in nearly 40 years, with two officials, who opposed holding interest rates steady at the July meeting, potentially arguing for a 50 basis point cut this time. ⑵ President Donald Trump's latest nominee to the Federal Reserve Board, Stephen Milan, may join those advocating for looser monetary policy. This could result in the first time since 1988 that three board members will vote against the majority. Meanwhile, Board member Lisa Cook plans to attend the meeting despite the president's attempts to remove her, and her voting weight will be a focus of market attention. ⑶ Economists point out that a significant divergence in the dot plot could increase market volatility and push up inflation expectations. Policy disagreements within the Federal Reserve Board, as well as presidential intervention, could have a profound impact on market sentiment and the future path of interest rates, especially amid mixed economic indicators.
