By Shreya Biswas

Copyright indiatimes

Fed meeting September

Fed meeting September: This week’s Federal Reserve meeting is anything but straightforward. Normally, the main focus of the Fed meeting is on the interest rate decision, but this time, uncertainty surrounds not only what the Fed will do but also who will actually be there, as per a report.Who Will Attend the Fed Meeting This Week?The meeting, set for Tuesday and Wednesday, may or may not include Fed Governor Lisa Cook, who is facing possible removal after US president Donald Trump’s efforts to oust her. Another uncertain attendee is Stephen Miran, a White House economic aide nominated by Trump to fill a vacant seat on the Fed’s board, but his confirmation might not come in time. These staffing questions might only be settled late Monday.How Inflation and Hiring Trends Are Shaping the Fed’s Next MoveThe US economy itself isn’t making the Fed’s job any easier. Hiring has slowed sharply, employers cut 13,000 jobs in June and added just 22,000 in August, as per a report. Inflation remains stubbornly high, with core prices rising 3.1% in August compared to a year earlier, well above the Fed’s 2% target, as per an AP report.ALSO READ: TikTok ban canceled? US-China reach framework deal, Trump and Xi to discuss on FridayWill the Fed Cut Rates? Here’s What Experts and Investors ExpectFed Chair Jerome Powell and other officials seem to be leaning toward addressing the slower job growth, according to the report. Investors expect the Fed to cut interest rates by a quarter point, bringing the benchmark rate to around 4.1%, as per the AP report. As the inflation hasn’t eased enough, the Fed may move cautiously and limit how many cuts it makes.On Wednesday, the Fed will also release its quarterly economic forecasts. Economists expect officials to signal one or two more rate cuts this year, with several more likely in 2026, as per the AP report.Live EventsEllen Meade, an economics professor at Duke University and former Fed economist, said that the current situation is unlike the clear-cut actions needed early in the pandemic or when inflation surged in 2021 and 2022, as reported by AP. Meade said, “It would be a tough time, even if the politics and the whole thing weren’t going on the way they are, it would be a tough time. Some people would want to cut, some people would not want to cut,” as quoted in the report.ALSO READ: Apple Watch Ultra 3 vs Ultra 2 — the biggest upgrades that you need to know before buyingPolitical Pressure from Trump: How It’s Impacting the Federal ReserveMeanwhile, Trump has been openly critical of the Fed, demanding deeper rate cuts, insulting Powell with names like “numbskull” and “moron,” and pushing to remove Cook, as per the AP report. Despite this political pressure, a former president of the Federal Reserve Bank of Cleveland and finance professor, Loretta Mester, said that Fed officials will let the criticisms sway their decisions on policy, according to the report. However, she pointed out that the attacks are unfortunate because they threaten to undermine the Fed’s credibility with the public, as reported by AP.Historic Divide: Could Fed Officials Split in Both Directions on Rate Cuts?Typically, 12 officials vote on Fed policies, seven governors and five regional bank presidents. If Cook is removed or Miran isn’t confirmed, only 11 will vote, according to the report. Regardless, the quarter-point cut is expected to pass, though the vote could be more divided than usual, as per AP.While Miran and Governor Michelle Bowman might push for a bigger half-point cut. On the other hand, regional bank presidents Beth Hammack and Jeffrey Schmid have expressed concern about inflation running too high and could oppose any cuts. If this happens, it would be the first time since 2019 that votes split in both directions, as per the AP report.David Andolfatto, an economics professor at the University of Miami and former top economist at the Federal Reserve Bank of St. Louis, said that, “This degree of division is unusual, but the circumstances are unusual, too,” adding, “This is a situation central banks really don’t like: The combination of inflationary pressure and labor market weakness,” as quoted in the report.FAQsWhat will happen at the Federal Reserve this week?The Fed is holding a major policy meeting where officials are expected to decide on interest rate cuts amid economic and political uncertainty, as per the AP report.Will Fed cut interest rates?Most experts expect a quarter-point cut, but future cuts could be limited if inflation stays high.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onFed meeting Septemberinterest rate decisionFederal Reserve meetingWill the Fed cut interest rates?Fed rate cutsWhat to expect from the Fed meeting this weekWho votes on Fed interest rate decisions?Jerome Powell rate cutLisa Cook Federal ReserveStephen Miran Fed vote(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless