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Institutions: The Federal Reserve Expected to Stand Pat This Week, Two Doves Likely to Voice Dissenting Views
Summary: According to Jinshi data, Praxis's chief US economist, Urupelxi, predicts that the Federal Reserve will keep interest rates unchanged at 4.25%-4.5% this week, but Waller and Bowman may express opposition. This could fuel speculation that once more officials appointed by Trump join the Fed board from the first quarter of 2026, the rate cut pace ...
According to Jinshi data, Praxis's chief US economist, Urupelxi, predicts that the Federal Reserve will keep interest rates unchanged at 4.25%-4.5% this week, but Waller and Bowman may express opposition. This could fuel speculation that once more officials appointed by Trump join the Fed board from the first quarter of 2026, the rate cut pace will accelerate. Doves Waller and Bowman may argue that monetary policy is restrictive as inflation related to tariffs is being offset by other factors, citing a neutral interest rate close to 3% as a reason for a rate cut. Powell is expected to try to guide the FOMC to wait as long as possible for the next rate cut, with a greater likelihood of a cut in October than in September.
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Link: Institutions: The Federal Reserve Expected to Stand Pat This Week, Two Doves Likely to Voice Dissenting Views [Copy]
