Yujie He @hyjbrighter: "🚨 𝗧𝗵𝗲 𝗙𝗲𝗱 𝗶𝘀 "𝗧𝗿𝗮𝗽𝗽𝗲𝗱":..."

Ireland

🚨 𝗧𝗵𝗲 𝗙𝗲𝗱 𝗶𝘀 "𝗧𝗿𝗮𝗽𝗽𝗲𝗱": 𝗥𝗮𝘁𝗲𝘀 𝗛𝗲𝗹𝗱 𝗮𝘁 𝟯.𝟳𝟱% 𝗔𝗺𝗶𝗱 𝗥𝗮𝗿𝗲 𝟰-𝗠𝗲𝗺𝗯𝗲𝗿 𝗗𝗶𝘀𝘀𝗲𝗻𝘁 𝗮𝗻𝗱 $𝟭𝟮𝟬 𝗢𝗶𝗹 🛢️ 𝗞𝗘𝗬 𝗣𝗢𝗜𝗡𝗧𝗦: 1. The Federal Reserve maintained its benchmark interest rate at 3.75%, but an incredibly rare four-member dissent highlighted deep internal divisions. 2. With core inflation sitting at 3.2% and Brent crude oil approaching $120 a barrel, a vigorous debate has emerged over the central bank's "easing bias". 3. Outgoing Fed Chair Jerome Powell preached a "wait and see" approach during his final press conference, insisting policy remains appropriately restrictive. 4. Incoming Fed Chair Kevin Warsh inherits a central bank described by analysts as fundamentally "trapped" between triggering inflation and crushing the economy. The Federal Reserve has opted to hold interest rates steady at 3.75%, but the unified front typically presented by the central bank has officially cracked. In a striking fracture not seen since 1992, four of the twelve voting members formally dissented against the latest policy statement. One committee member, Steven Moran, voted against the action because he actively favored an immediate 0.25% rate cut. The other three dissenters supported holding the rate but fiercely objected to the official statement's "easing bias," which signals that the Fed is more likely to cut rates than to raise them. 🦅 𝗔 "𝗩𝗶𝗴𝗼𝗿𝗼𝘂𝘀" 𝗗𝗲𝗯𝗮𝘁𝗲 𝗼𝗻 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁𝘀 🕊️ During the post-meeting press conference, Fed Chair Jerome Powell admitted the committee had a "vigorous discussion" about shifting their forward guidance to a neutral stance, where a rate hike is considered just as likely as a rate cut. Powell acknowledged that core inflation has crept up to 3.2% and is moving "in the wrong direction". Despite this, the majority decided against changing the language, with Powell emphasizing that there is "no rush to make that decision now" given the immense uncertainty of the next 30 to 60 days. ⛽ 𝗟𝗼𝗼𝗺𝗶𝗻𝗴 𝗢𝗶𝗹 𝗧𝗵𝗿𝗲𝗮𝘁𝘀 𝗮𝗻𝗱 𝗮 "𝗪𝗮𝗶𝘁 𝗮𝗻𝗱 𝗦𝗲𝗲" 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 👀 Looming over the Fed's inflation battle is the threat of global energy shocks, with the benchmark Brent crude oil approaching $120 a barrel. Powell acknowledged the "real" prospect of elevated oil prices bleeding into core inflation, noting that it is already visible in rising airfares. However, Powell defended a "wait and see" approach, stating that the current 3.75% rate is at the "high end of neutral or perhaps mildly restrictive". He pointed to a stable labor market as a buffer, allowing the Fed time to observe how much of the energy shock passes to consumers. "If we need to hike we will... and if it's appropriate to cut then we'll signal the opposite," Powell stated, confirming that nobody is currently pushing for an immediate rate hike. 🪤 𝗔 "𝗧𝗿𝗮𝗽𝗽𝗲𝗱" 𝗖𝗲𝗻𝘁𝗿𝗮𝗹 𝗕𝗮𝗻𝗸 𝗔𝘄𝗮𝗶𝘁𝘀 𝗞𝗲𝘃𝗶𝗻 𝗪𝗮𝗿𝘀𝗵 💼 This meeting marked Powell's final appearance as Fed Chair. When asked by reporters how his eight-year legacy will be remembered, Powell deflected, offering the press a "mulligan on that". According to financial commentary, that legacy might be defined by the phrase "inflation is transitory" after battling supply shocks for five years. Ultimately, analysts note that the Fed is currently "trapped in a very difficult spot". Cutting rates could spike inflation further, while raising them risks crushing the economy. This precarious balancing act now falls squarely to incoming Fed Chair Kevin Warsh, who inherits a highly divided committee and an economy walking a dangerous tightrope

Not investment advice. The author may have financial interests in the mentioned instruments.

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