The Fed faces internal instability and political pressure, may open a 25 basis point rate cut

According to Kingsen data, BNP Paribas' James Egelhof said the Fed may restart interest rate cuts at a key meeting this week. In addition to coping with sticky inflation and weak labor markets, Federal Reserve Chairman Powell also needs to deal with instability within the Federal Open Market Committee. Three Trump-appointed officials have entered the committee, calling for a sharp cut. Egelhof expects Powell to strive to maintain policy balance under political pressure, which may push the Federal Reserve to shift its focus to weak labor markets. BNP Paribas expects the Federal Reserve to start a series of 25 basis points rate cuts.