"Fed's Mouthpiece": Two officials may voice dissent this week

ChainCatcher message, "Fed mouthpiece" Nick Timiraos published an article stating that this week's Federal Reserve meeting may have two board members dissenting, a situation that has not occurred in over 30 years (or 259 consecutive policy meetings). Powell and some of his colleagues have expressed a tendency to adopt a wait-and-see approach at this week's meeting, while the potential dissenters—Federal Reserve governors Waller and Bowman—happen to be two appointees of President Trump. Both have expressed support for interest rate cuts, and Trump has publicly called for rate cuts.

SGH Macro Advisors Chief U.S. Economist Tim Duy stated, "Trump will eventually have an impact on every institution, and perhaps the Fed's ability to resist that influence has come to an end." Regardless of Powell's decision, this week's divergence may be unavoidable—if the Fed cuts rates, it may face opposition from hawkish individuals concerned about a resurgence of inflation.