"150 basis points? This proposal is simply treating the Federal Reserve as a private ATM!" When Besant's radical remarks hit Wall Street, the entire financial sector exploded. The former Treasury bigwig slammed the table in anger: "Current interest rates are high enough to suffocate the economy!" More astonishing was his harsh statement – the Federal Reserve must cut rates by at least 150 to 175 basis points; this is not a policy suggestion, it's clearly an axe aimed at splitting the central bank's monetary policy gate!
The Federal Reserve has long been in turmoil. At the July interest rate meeting, two committee members tore their faces: "We do not recognize this interest rate decision!" Even more concerning is the 'insider' Stephen Milan, placed by Trump, who is holding a dovish rate cut plan just waiting to ignite at the meeting. That person in the White House has been firing repeatedly on social media: "Tariffs can't bear the burden of inflation! This group at the Federal Reserve is too slow!" The political hand has firmly grasped the central bank's decision-making throat.
Traders have long been betting red-eyed. As soon as the July inflation data emerged, the market pushed the probability of a rate cut in September to 96%! UBS analyst Haefele is even more radical than Besant, bluntly stating: "Cut 100 basis points directly in September, don't dawdle!" These people are not betting on short-term fluctuations, but on the Federal Reserve's policy underpants.
But the real data is hitting the radicals hard in the face. Core inflation lingers, climbing back to a high of 3.1%, like a ghost wandering outside the Federal Reserve's windows. Blue Line Futures strategist sneered: "Open your eyes and take a look! Inflation has rebounded for two consecutive months, a rate cut in September? Are you kidding?" JPMorgan's Osborn dealt an even harsher blow: "Unless economic data falls off a cliff, they will definitely drag it out until the end of the year!"
The employment report has become the judge of life and death. The average new jobs over three months have dropped to 35,000, and the May data has been revealed – slashed from 144,000 to 19,000! This is not just a cooling; it's like the economy is plummeting into an ice age. Comerica Bank economist Bill Adams exposed the truth: "Prices are as sticky as gum; what do tariffs mean? September employment data is the real axe!"
A darker plot is hidden behind the scenes. The White House basement holds an 11-person blacklist, just waiting to oust Powell next May. Jefferies' Zawos, former board member Lindsay, and BlackRock's Reed – all are 'tough characters' in the financial circle. Besant says 'cast a wide net for the worthy', then mutters 'no need for a shadow chair', and this old fox's words are filled with poisonous hints.
Deutsche Bank's Jim Reid poured cold water directly: "Celebrating with champagne now? Be careful of losing your front teeth!" The employment data in the coming weeks is the real knife and gun. As Besant calls for 'reliable data' while opposing the suspension of employment reports, this split scene has completely exposed the absurd nature of Wall Street.
This century's gamble has reached a life-and-death stage. Is Besant's advocated 'compensatory rate cut' a cure for the market or a poison for the soul? When the demons of inflation and the god of economic recession come knocking for their due, how many bullets are left in the Federal Reserve's arsenal?
The most lethal question hangs overhead: When the door to the September interest rate meeting opens, will Powell really dare to pull the trigger on a 50 basis point rate cut under inflation pressure? This financial Russian roulette has some wanting to go to the rooftop, while others want to pop champagne – do you bet on policy going left or right?
