According to BlockBeats, on September 26, when the Federal Reserve released its decision on September 18, the forecast showed that the vast majority of officials were in favor of lowering the benchmark interest rate by a full percentage point or more this year, which means at least one significant rate cut. But there are also quite a few people who think only 75 basis points are needed, indicating support for three smaller rate cuts.

But in the end, all but one of the 12 voting members of the Federal Open Market Committee (FOMC) supported Powell’s 50 basis point rate cut. This is a key victory for Powell as he tries to prolong the economic expansion that many predicted was long over. The lone dissenter, Fed Governor Bowman, called for a more measured pace of rate cuts to avoid derailing progress on inflation.

Economists say another 50 basis point rate cut cannot be ruled out if the economy starts to decline, as Powell will prioritize keeping the economy close to full employment as long as inflation cools. If labor market data disappoints again, Powell may have a chance to tip his colleagues toward a 50 basis point rate cut again in the coming months. Some officials have said in speeches in recent days that they are likely to support another 25 basis point rate cut, but have also left the door open to another large rate cut. (Jinshi)

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