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2025-09-18 10:32:43
[Federal Reserve Mouthpiece: Powell avoids fierce divisions in effort to prove Fed independence] "Federal Reserve Mouthpiece" Nick Timiraos: When the Federal Reserve cut interest rates on Wednesday, on the surface it looked like a routine monetary policy operation. The market reaction was relatively flat, and Chairman Jerome Powell largely avoided the fierce divisions caused by the decision, although the decision came against the backdrop of unprecedented political confrontation. The policy shift initiated by Powell in Wednesday's rate cut may represent his last effort to prove that an independent US central bank is still capable of leading the economy in a complex environment, rather than giving up its independence before officials who are more in line with President Trump's priorities gain greater control. Powell's term as chairman will end in the spring of next year. For the third time in his term, Powell tried an extremely subtle operation: cutting interest rates not because a recession is imminent, but to prevent a recession from happening.
