President Trump has declared the FED should cut by 1%. But according to Bloomberg, three Federal Reserve policy makers voiced their resistance to the notion that the U.S. economy needs lower interest rates, and a fourth said he wanted to avoid taking further action “unless we have to,” foreshadowing a sharp debate with officials who want to cut again.
Investors have fully priced a quarter percentage-point reduction at the Fed’s Sept. 17-18 policy meeting, but dissenting Fed voices may limit the prospects for the larger move that some have advocated, including President Donald Trump.
Chairman Jerome Powell could provide more guidance when he speaks on Friday at the annual central banker retreat in Jackson Hole, Wyoming.
“As I look at where the economy is, it’s not yet time, I’m not ready, to provide more accommodation to the economy without seeing an outlook that suggests the economy is getting weaker,” conference host and Kansas City Fed President Esther George told Bloomberg Television.
