BlockBeats news, on July 31, Facet's Chief Investment Officer Tom Graff stated that the Federal Reserve is clearly in a tricky position. Logically, they expect new tariffs to bring a certain level of inflation, and ideally, the Fed hopes to consider cutting interest rates only after inflation peaks. But the pressure is mounting, and even if the White House does not exert external pressure, the recent weakness in the labor market is enough to worry the Fed.
In fact, this is likely the reason why Waller and Bowman voted against maintaining interest rates at this meeting and advocated for rate cuts. I believe this resolution lays the groundwork for the Fed to initiate rate cuts at the September meeting and possibly cut rates 1 to 2 more times within the year. The issue is that, despite the possibility of rising prices, the Fed still needs to initiate rate cuts, which will be extremely challenging in terms of communication. Furthermore, Trump's continued pressure on interest rates exacerbates this communication difficulty.
At that time, Powell may be seen by the outside world as yielding to Trump's demands. However, if job growth continues to weaken, the likelihood of the economy falling into recession will continue to rise, and Powell will no longer be able to ignore this. (Jin Shi)