Why the Federal Reserve is split on the future of interest rates
Jerome Powell began with a big cut. What comes next?
A single dissent on the Federal Reserve’s interest-rate committee garnered plenty of attention last week. Understandably so. It marked the first time since 2005 that a Fed governor had opposed a rate decision. Michelle Bowman’s disagreement highlighted concerns that a half-percentage-point cut might be excessive for an economy yet to vanquish inflation. Nevertheless, her 11 other voting colleagues all supported the cut—an indication of near-total unanimity on where the Fed should set rates today.
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This article appeared in the Finance & economics section of the print edition under the headline “Hammer and tongs”
Finance & economics September 28th 2024
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From the September 28th 2024 edition
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Can Andrea Orcel, Europe’s star banker, create a super-bank?
An interview with the boss of UniCredit
Why economic warfare nearly always misses its target
There is no such thing as a strategic commodity
A tonne of public debt is never made public
New research suggests governments routinely hide their borrowing
Xi Jinping’s belated stimulus has reset the mood in Chinese markets
But can the buying frenzy last?