TechFlow news — On September 10, according to Jinshi Data, Federal Reserve Chair Jerome Powell is expected to seek a unanimous decision for an interest rate cut at the upcoming FOMC meeting, with a reduction of at least 25 basis points. Several economists predict that Powell may consider pushing for a 50-basis-point cut. Currently, the federal funds rate stands in the range of 5.25% to 5.50%, the highest level since 2001.
Kathy Bostjancic, Chief Economist at Nationwide, said: "Powell prefers achieving consensus on the first rate cut, which is crucial for signaling a policy shift." Diane Swonk, Chief Economist at KPMG, noted: "Powell is more concerned about the labor market than other FOMC members, which could drive him toward a more aggressive easing strategy."
However, Dan North, Senior Economist at Allianz Trade Americas, warned: "A proposal for a 50-basis-point cut could face serious challenges and might lead several committee members to cast dissenting votes, sending a signal of division to the market." Jeffrey Roach, Chief Economist at LPL Financial, explained: "FOMC members engage in extensive communication before meetings to build consensus, but the final decision still carries uncertainty." A unanimous vote would send a clear signal of unified policy stance from the Fed, helping to stabilize market expectations.
