Analysis: Powell remains firmly in control of the Fed

Before last week's interest rate meeting, some on Wall Street had foreseen deeper divisions at the Federal Reserve, but on the contrary, after voting against the decision at the previous meeting, Governors Waller and Bowman chose to align with their colleagues this time, making Milan, who was appointed by Trump, the only outsider in the 11-1 vote. Former New York Fed President William Dudley stated, "Powell remains firmly in control of the Fed. Officials who favored keeping interest rates unchanged have deferred to the Fed Chairman and agreed to a rate cut. Even Trump appointees Bowman and Waller rejected Trump's demands for a larger rate cut. Their actions demonstrate integrity, commitment to the Fed's mission, and the importance of maintaining central bank independence." Susan Hill, head of the liquidity team at Federated Hermes, said that while pressure from the White House is expected to continue, "at least for now, most people seem to be behind Powell, which I'm sure explains, at least in part, why he appeared so calm and confident at the press conference." Powell, whose term as chairman expires in May next year, also appeared to deliver a powerful counterattack to Milan and the White House, both of whom Trump appointed, in his post-meeting remarks. When asked whether a 50 basis point rate cut had been considered internally, Powell said there was "no broad support at all." (Jinshi)