TechFlow, September 18 — According to Jinshi Data, "Fed Whisperer" Nick Timiraos reported: When the Federal Reserve cuts interest rates on Wednesday, it superficially appears to be a routine monetary policy move. Market reactions have been relatively muted, and Chair Jerome Powell has largely avoided sparking sharp divisions over this decision, even though it comes amid an unprecedented political confrontation.
The policy shift initiated by Powell through Wednesday's rate cut may represent his final attempt to demonstrate that an independent U.S. central bank still has the capacity to guide the economy through complex conditions, rather than relinquishing its independence before officials more aligned with President Trump's priorities gain greater control.
Powell's term as chair will end next spring. For the third time during his tenure, Powell is attempting an extremely delicate maneuver: cutting rates not because a recession is imminent, but to prevent one from occurring.
