Latest News🔥 Institution: The Federal Reserve's September Meeting Will Certainly See Dissent
Former Chief Economist of Bank of America Securities, Ethan Harris, stated that the days of unanimous decisions at the Federal Reserve are long gone. The dissenting opinions on rate cuts from Waller and Bowman, appointed by President Trump in July, have already "broken the harmony." This means that no matter what decision the Federal Reserve makes, there will be dissent.
Harris also stated: "I expect fierce debates between hawks and doves before the September meeting, adding some uncertainty to the rate cut decision. The hawks will not easily concede. But I believe this month's data will support a 25 basis point rate cut.
Chief Economist Stephen Ricchiuto of Mizuho Securities stated that currently, neither the hawks supporting maintaining interest rates nor the doves advocating for easing policies hold a majority. Most Federal Reserve officials hold a middle ground.
The crux of the debate within the Federal Reserve is whether it makes sense to cut rates to support a weak labor market.
