Economists predict that Powell may seek unanimous approval for a rate cut decision, even a substantial rate cut
Federal Reserve Chairman Jerome Powell is likely to try to get everyone on board for at least a 25 basis point rate cut at the meeting later this month. However, due to recent labor market weakness, Powell and others may push for larger scale cuts. "Powell doesn't need consensus at the upcoming September meeting to start cutting rates, but he might prefer it that way, especially during the first rate cut," said Kathy Bostjancic, Senior Vice President and Chief Economist of Nationwide in an email. Former Labor Department economist Betsey Stevenson wrote on social media: "Consensus has always been a way to prevent politicization of the Fed; if I were serving on FOMC, I think I would prioritize seeking consensus." Dan North, senior economist at Allianz Trade Americas spoke about whether Powell could gain consensus for larger scale cuts: "It will be difficult. There will be a lot of opposition voices which would look bad." Diane Swonk, chief economist at KPMG wrote on social media that Powell might be willing to take this risk. Swonk wrote: "Powell is more worried about the labor market than his colleagues are. He wants a soft landing. The question is whether he'll push hard for a 50 basis point cut and how much opposition he's willing to accept in order achieve this goal."
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