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According to economic observers, the U.S. Federal Reserve is about to experience a historic moment. At this week's Fed policy meeting, there may be a situation where two governors hold differing opinions for the first time in nearly 30 years. This rare internal disagreement has raised external concerns about the Fed's decision-making independence.
Fed Chairman Powell and some colleagues tend to adopt a wait-and-see attitude at this meeting. However, Governor Waller and Bowman expressed support for a rate cut, which aligns with the President's public call. Notably, these two potential dissenters were both appointed by the current President.
This situation has sparked a discussion in the market about the independence of the Fed. Some economists believe that the influence of political factors on various institutions may be deepening, making it difficult for the Fed to remain unaffected. However, regardless of the final decision, this week's divergence seems difficult to avoid. If the Fed chooses to cut interest rates, it may face opposition from hawkish individuals concerned about a rebound in inflation.
This unprecedented internal division not only reflects the complexity of the current economic situation but also highlights the challenges faced in formulating monetary policy. How the Fed balances its independence with responding to external pressures will become the focal point of market attention.
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