Federal Reserve Faces Division Over Interest Rate Cuts

According to BlockBeats, the Federal Reserve is experiencing a split between hawkish and dovish members regarding the extent of interest rate cuts. Several financial institutions have made predictions about the potential outcomes of the upcoming meeting. Citibank anticipates that three voting members, including Federal Reserve Governors Waller, Bowman, and Milan, will support a 50 basis point rate cut. Morgan Stanley expects a decision for a 25 basis point cut, although newly appointed Governor Milan may advocate for a 50 basis point reduction. JPMorgan predicts a 25 basis point cut but foresees 2-3 participants voting against it, favoring a 50 basis point decrease instead. Rabobank believes Milan will join dissenters Bowman and Waller from July in supporting a rate cut, possibly advocating for a significant 50 basis point reduction. ING suggests that Waller and Bowman might vote for a larger rate cut, with Milan potentially joining them, although there is skepticism about his final vote supporting a 50 basis point cut. SPI Asset Management indicates that 2 or 3 members may back a 50 basis point cut, while others favor a 25 basis point reduction. Cook might shift his stance to support a 25 basis point cut in response to U.S. President Donald Trump. Deutsche Bank predicts that up to three dovish members may call for a 50 basis point cut, while one or two hawkish members might vote against any rate reduction. Wrightson foresees opposing views, with Waller, Bowman, and Milan advocating for a 50 basis point cut, while some regional Federal Reserve presidents may prefer to maintain current rates. ANZ Bank expects the rate decision will not be unanimous, predicting at least one official, Milan, will support a 50 basis point cut, while another, Schmid, may oppose any policy changes.