Possible dissent hangs over Fed's first rate cut in a decade

[Yo_Mama_Been_Loggin]

U.S. Federal Reserve policymakers will not surprise markets if they deliver on expectations and cut U.S. interest rates for the first time in a decade on Wednesday.

Less clear is how Fed Chairman Jerome Powell will manage debate at the central bank about whether the stimulus is necessary. The Fed chief faces a strong possibility that the move will draw at least one dissent.

Boston Fed President Eric Rosengren, one of two current policymakers who was present when the Fed last initiated a rate-cutting cycle nearly 12 years ago, earlier this month said he does not want to ease policy "if the economy is doing perfectly well without that easing," adding in a CNBC interview that the state of the U.S. economy is "quite reasonable."

Rosengren, along with Chicago Fed President Charles Evans, voted in favor of a half-percentage-point rate cut in September 2007, which proved to be the first of 10 cuts that would eventually take the federal funds rate to near zero.

If Rosengren objects this time, though, he may not be alone. Kansas City Fed President Esther George may also vote against a rate cut. In recent remarks, she said monetary policy is "in a good range," though she is "prepared to adjust those views" should downside risks materialize.

https://www.msn.com/en-us/money/markets/possible-dissent-hangs-over-feds-first-rate-cut-in-a-decade/ar-AAF3XOe?li=BBnbfcN

[philf99]

1. A rate cut isn't needed

The rate cut is a mistake. The economy is growing a stable amount and unemployment is relatively low.

Why would you use your best cure during an economic down turn when you don't need it.

[at140]

2. Donny wants the rate cut because

He can save millions in interest payments for boatload of business loans.

[watoos]

3. I think this has to do with trade,

Trump's trade policy has been a dud, he wants to weaken the dollar to make American products more desirable.

I could be wrong about that, I'm just an internet economist.