Recent Fed voting members' views on interest rates show "three-way divergence," with Chairman Powell leaning dovish

BlockBeats News, October 30, the Federal Reserve's voting members this year have recently shown a "three-way split" in their views on interest rates, as follows:

Advocating for substantial rate cuts

1. Federal Reserve Governor Milan: Supports a 50 basis point rate cut in October. Cutting rates twice more this year sounds realistic. The difference in policy views with colleagues is more about the pace of rate cuts rather than the ultimate goal of rate cuts.

Dovish

1. Federal Reserve Chairman Powell: Liquidity in the money market is gradually tightening, and the balance sheet reduction may be nearing its end in the coming months; recent economic activity data has been stronger than expected, and downside risks in the job market are rising. Acting too slowly may suppress employment, while acting too quickly may cause the anti-inflation mission to fail halfway.

2. Federal Reserve Governor Waller: Supports a 25 basis point rate cut in October. Officials can gradually ease monetary policy by cutting rates 25 basis points at a time to support the weakening labor market. Rate cuts are needed, but should be done cautiously.

3. Federal Reserve Governor Bowman: Continues to expect two more rate cuts before the end of this year. As long as the labor market and other economic data develop as I expect, we will continue on the path of lowering the federal funds rate.

4. Federal Reserve Collins: Given the reduced inflation risks and concerns about the job market, further rate cuts seem "prudent," and another 25 basis point cut may be appropriate.

5. Federal Reserve Williams: Supports further rate cuts this year, even though inflation has deviated from the central bank's 2% target in recent months. Rate cuts are to prevent further deepening of cracks in the labor market.

Hawkish

1. Federal Reserve Vice Chairman Jefferson: Inflation and employment targets face risks, caution must be maintained.

2. Federal Reserve Governor Barr: The Fed should remain cautious about further rate cuts; the current interest rate is moderately restrictive, tariffs pose inflation risks, and the basically balanced labor market has potential vulnerabilities.

3. Federal Reserve Musalem: Skeptical about further rate cuts. As risks to the labor market have increased, supports a 25 basis point rate cut in September, but since the inflation rate is nearly one percentage point higher than the Fed's 2% target, further rate cuts may mean excessive complacency about rising prices.

4. Federal Reserve Schmid: Inclined not to cut rates further; when the Fed seeks a balance between the dual risks of being too tight or too loose, it should continue to focus on the risk of excessive inflation.

5. Federal Reserve Goolsbee: Cautious about cutting rates sharply in advance, does not expect inflation to subside on its own. Sees both aspects of the Fed's dual mandate deteriorating. (Golden Ten Data)