Waller, a potential successor to Fed Chair Powell, appeared satisfied with a 25 basis point rate cut.

Economists at Bank of America, led by Barve, pointed out that Waller, the top candidate to succeed Powell, seemed satisfied with a 25 basis point rate cut. Barve said: "We believe that Waller has dispelled concerns that his turn to dovishness in recent months was politically motivated rather than economically motivated. Whether this will have an impact on his candidacy for Fed chairman remains to be seen." However, this will not make the challenges facing the Fed in the near term any easier. With tariff-related inflationary pressures increasing and the labor market deteriorating rapidly, the internal debate is likely to be very intense. "Policymakers remain strongly divided on the pros and cons of further easing, setting the stage for fierce votes in the last two meetings of the year," said Samuel Tombs, chief U.S. analyst at Panson Macro. (Jinshi)