The U.S. Federal Reserve is facing an unusual internal split. Two governors appointed by former President Donald Trump are reportedly planning to vote against Chairman Jerome Powell’s proposal to keep interest rates unchanged at today’s FOMC meeting. Instead, they are advocating for an immediate rate cut.
According to reputable economic journalists, this could mark the first significant internal disagreement at the Fed in over 30 years. Governors Christopher Waller and Michelle Bowman have previously voiced support for more aggressive monetary easing.
📉 Rates to Stay or Drop?
The current interest rate of 4.25–4.5% has remained unchanged since January. Powell intends to maintain it until there are clearer signs of inflation cooling. However, Waller and Bowman appear to disagree – arguing that inflation has eased enough and waiting could hurt the labor market.
This debate is even more heated because both governors are top contenders to succeed Powell as Fed Chair when his term ends in May next year. Other potential candidates include Kevin Warsh, Kevin Hassett, and Scott Bessent.
📊 Trump’s Pressure and Crypto Market’s Focus
The situation intensified further after Donald Trump recently visited the Fed’s headquarters, reportedly pressing for a policy shift and lower rates. This move could impact not only traditional markets but also the crypto sector, which is highly sensitive to any signals about rate changes.
While markets expect Powell to remain cautious today, any divided vote or visible disagreement among Fed governors could trigger volatility. The decision coming tonight might have broader implications beyond the U.S. economy – the entire world is watching.
#FOMC , #FederalReserve , #TRUMP , #Fed , #Powell
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