🚨 There was another noteworthy event last night:
Although Powell has temporarily resisted Trump's political pressure and chose to hold steady without lowering interest rates, this meeting saw, for the first time in over 30 years, two rare dissenting votes.
One was Waller, who is now determined to follow the understanding king;
The other was Bowman, the vice chair personally nominated by the understanding king, who has now clearly turned against him.
It is important to note that since 1993, the Federal Reserve Board has only cast five dissenting votes, completely guided by consensus, highlighting the long-standing prevalence of groupthink among decision-makers.
However, it is evident that there are now divisions within the Federal Reserve, splitting into three different factions:
1⃣ One faction advocates for an immediate rate cut, fearing a deterioration in the labor market;
2⃣ The centrists are waiting, wanting to confirm the moderate impact of tariffs with more data;
3⃣ The other faction is more cautious, wanting to hold out until they see clear economic weakness before taking action.
In fact, those within the Federal Reserve should also understand that a return to a rate-cutting path in the future is inevitable; the important political art lies in how to cut, when to cut, and under what pretext to cut.
It needs to be justified, logical, and ideally, they can also cleanly shift the blame.
After all, no one wants to take the blame in an election year, especially not Master Powell, who absolutely will not be a stepping stone for the understanding king's comeback!
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