Powell's 'Warm-up'? Internal Disagreements at the Federal Reserve First Airing by Deputy Nick

Before Powell's upcoming speech, his 'deputy' Nick warmed up the market by forwarding an article from the Wall Street Journal, which pointed directly at the internal disagreements over interest rate cuts within the Federal Reserve:

• Boston Fed Faction: Advocates for early rate cuts, with the core concern being 'if actions are taken too late, the job market may face a risk of collapse.'

• Cleveland Fed Faction: Holds an opposing view, arguing 'rate cuts cannot be rushed, premature action may allow inflation to return.'

If we translate the viewpoints of both factions into simpler terms, the essence is a 'dilemma of policy choice': if rates are cut too early, it may trigger a rebound in inflation, leading to a 'shrinkage of wallets' for the public; if rates are cut too late, it may hamper employment, putting some individuals at risk of 'losing their jobs.'

From the current internal voting tendencies, the 'preventive rate cut strategy' proposed by Boston Fed President Collins is more widely accepted—its core logic is 'not to make premature judgments but to closely monitor data'; as long as both signals of 'job market clearly weakening' and 'inflation continuously falling' appear simultaneously, rate cuts will be decisively initiated.

It is clear that Nick's recent 'airing' carries a very explicit subtext: 'Tomorrow Powell will speak, everyone shouldn't be overly swayed by emotions. We are still entangled internally over rate cuts, and the policy will not be an extreme 'one-size-fits-all' direction~' 🤡$BTC $ETH #美国初请失业金人数 #亚洲家族办公室加密资产配置 #杰克逊霍尔会议