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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