The FOMC voted to keep the Funds rate unchanged and as I thought possible two FOMC members who thought a rate cut was appropriate dissented. This is the first time there was two dissenting votes since 1993. The rarity of dissent increased the perception that the FOMC will lower the Funds rate at the September 17 meeting. Chair Powell was of course asked by a reporter about a rate cut at the meeting in September. “There is a lot of lean in the markets and not to mention out of the Administration for a rate cut now in September. Is that expectation unrealistic at this point?” Chair Powell’s...
