BNP: Cutting interest rates is Powell's most "easy" task today
2025-09-17 14:10:28
For the Federal Reserve, resuming rate cuts at this week's crucial meeting may just be the easiest part of the process. James Egelhof, BNP Paribas, said that in addition to carefully setting monetary policy between sticky inflation and a weak labour market, Federal Reserve Chairperson Jerome Powell also needs to deal with "growing instability within the FOMC" and "try to cool down". Mr. Trump has been forceful in calling for sharp rate cuts, and now three of his appointees are on the committee. Mr. Egelhof predicted that Mr. Powell would "seek to strike an extremely careful balance to present business as usual". He pointed out that how to deal with political pressure could be the decisive factor in pushing the Fed to tilt its policy focus towards "labour market weakness". BNP Paribas expects the Fed to initiate a series of 25 basis point rate cuts.
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