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2025-09-17 19:02:15
[Focus on Powell's Signal: Where Will the Fed Go with Rate Cuts] ⑴ The market generally expects the Fed to announce a 25 basis point rate cut at its meeting on Wednesday, driven by the recent slowdown in job growth. Last month, Fed Chairman Powell hinted at prioritizing employment over persistent inflation concerns. However, this rate cut may not be unanimous, with some officials potentially favoring a larger cut or even no cut at all. ⑵ A key focus will be whether the Fed signals further rate cuts in the future. In their quarterly economic projections, Powell and his colleagues may signal a total of three rate cuts by 2025, or maintain the two rate cuts projected in June. ⑶ Furthermore, potential dissents at this meeting will warrant attention. At the July meeting, two governors—Michelle Bowman and Christopher Waller—dissented from the decision to keep interest rates unchanged. Whether they will dissent again this time, arguing for a more aggressive rate cut, will be a key question. ⑷ The voting patterns of the new governors will also be a key focus. Stephen Milan, the US President's economic advisor, was confirmed by the Senate this week as the newest member of the Federal Reserve Board. Close attention is focused on whether he will support the central bank's consensus or push for more aggressive rate cuts, as some analysts expect.
