Federal Reserve megaphone: Powell avoids bitter disagreement, strives to prove Fed independence

Nick Timiraos: When the Federal Reserve cut interest rates on Wednesday, it appeared on the surface to be a routine monetary policy exercise. The market reaction was muted and Jerome Powell, chairperson, largely avoided the bitter disagreement over the decision, even as it came amid an unprecedented political confrontation. The policy turn that Mr. Powell initiated with Wednesday's rate cut could represent his last effort to demonstrate that an independent US central bank can still lead the economy in a complex environment, rather than relinquishing independence until officials better aligned with President Trump's priorities gain greater control. Mr. Powell's term as chairperson ends next spring. For the third time in his term, Powell is attempting an extremely delicate maneuver: cutting interest rates not because a recession is imminent, but to prevent it.