Chair Powell noted that there is a real split within the FOMC. “We have 10 participants out of 19 who wrote down two or more cuts for the remainder of the year and nine who wrote down fewer than two cuts.” Based on the projections in the SEP, there is one group (9) who is more worried about inflation which is why they think 1 more cut in 2025 is warranted. The second group (9) is focused on the labor market and want to make sure it doesn’t unravel further, which is why they want two cuts before year end. The third ‘group’ (1) thinks the FOMC should lower the Funds rate by an additional 1....
