‘Silent Dissents’ Reveal Growing Fed Resistance to Powell’s Cuts скачать в хорошем качестве

‘Silent Dissents’ Reveal Growing Fed Resistance to Powell’s Cuts

Guneet Dhingra, Head of US Rates Strategy at BNP Paribas, discusses the dissenting votes against Wednesday's rate cut decision and how AI is becoming a major macro force. Federal Reserve Chair Jerome Powell downplayed dissenting votes against Wednesday’s decision to lower interest rates again, but a slew of finer details from the meeting revealed just how divided the central bank has become. Powell pushed through the quarter percentage point cut not only over the objection of a few voters. A much larger group of regional Fed bank presidents who participated in the debate but weren’t among this year’s voting roster also signaled they opposed the cut. The fractures could foreshadow what’s to come in 2026, when a new chair may struggle even more than Powell to marshal consensus at the Fed. “It’s very unusual. In my 10-plus years of being involved with the Fed, I haven’t seen this,” said Patrick Harker, who served as president of the Philadelphia Fed until his retirement in June.  Just two policymakers — Kansas City Fed President Jeff Schmid and Chicago’s Austan Goolsbee — formally dissented in favor of leaving rates unchanged. The other dissent came from Governor Stephen Miran, who continued to call for a larger rate reduction. The remaining protests came through different channels. In quarterly rate projections the Fed published alongside the decision, six policymakers said the benchmark federal funds rate should end 2025 in a range of 3.75% to 4% — where it stood before Wednesday’s cut — suggesting they opposed the move. Given that at least four and perhaps all of those six officials lacked a vote at the meeting, some Fed watchers have dubbed the high rate forecasts for 2025 as “silent dissents.”  “I would’ve been one of those silent dissents,” Harker said. “I think the cut is a mistake.” There was yet another clue buried in the materials the Fed published Wednesday. In addition to the officials around the table, business leaders who comprise the boards of directors of the regional Fed banks also get to weigh in. They submit recommendations for another short-term rate set by the Fed, which in practice always moves up and down with the central bank’s main benchmark. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X:   / bloombergradio   Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts:    / bloombergpodcasts   Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake