Four Dissenting Votes! Fed Divisions Deepen as Powell's Tenure Ends

On April 30, the Federal Reserve decided to keep interest rates unchanged as expected, with a total of 12 voting members participating in the vote, resulting in 4 dissenting votes, the highest since October 1992. According to the FOMC statement, Fed Governor Michelle Bowman voted against maintaining the current interest rate, supporting a 25 basis point cut; Cleveland Fed President Loretta Mester, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan voted to keep rates unchanged but opposed the language in the statement that retained a dovish bias. The FOMC statement included the term ‘further’ in the context of considering the degree and timing of any further adjustments to the federal funds rate target range. Market analysts expect that the term ‘further’ will be removed to diminish the implication of a rate cut. This meeting is likely to be Powell’s last as Fed Chair. (Jin Shi)

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