PANews reported on September 23 that according to Jinshi, the differences among Federal Reserve officials on whether to cut interest rates have intensified. Trump official Bowman is worried that the Fed may have been lagging behind in its actions and said that if employment deteriorates, more aggressive interest rate cuts will be needed; Goolsbee said that inflation has exceeded the target and is showing an upward trend, so radical easing is not appropriate.
On Tuesday, Federal Reserve Vice Chairman for Supervision, Bowman, said the Fed may have lagged in supporting the labor market. If demand weakens and businesses begin laying off workers, the Fed may need to accelerate its rate cuts. On the same day, Chicago Fed President Goolsbee said the Fed should be cautious about further rate cuts given that inflation is above target and trending upward.
Fed Chairman Jerome Powell is due to speak later on Tuesday. On Monday, several officials said they remained cautious about further rate cuts given inflation remains nearly 1 percentage point above target, while Milan said he would be aggressive in cutting rates given that the Trump administration's policies are changing demographics, trade and inflation dynamics.


