Franco-Ba Bank: Rate cuts themselves are Powell's most "easy" task today

Huobi HTX reported that for the Fed, restarting interest rate cuts at this key meeting this week may be the easiest step to complete. BNP Paribas James Egelhof said that in addition to prudent monetary policy formulation between sticky inflation and weak labor markets, Federal Reserve Chairman Powell also needs to deal with "increasing instability within the Federal Open Market Committee" and "try to cool down." Trump has been calling for a sharp rate cut, and now three officials he appointed have entered the committee. Egelhof expects Powell will "strive to achieve an extremely cautious balance to show what is normal." He pointed out that how to deal with political pressure may become the decisive factor in driving the Federal Reserve to tilt its policy focus toward "weakness in the labor market." BNP Paribas expects the Federal Reserve to start a series of 25 basis points rate cuts.