Waller, a potential successor to Fed Chairman Powell, appears to be happy with the 25 basis points cut.

Bank of America economists led by Valve pointed out that Waller, the top candidate who succeeded Powell, appears to be satisfied with the 25 basis points cut. "We believe Waller has removed the concern that his turn to dove in recent months was politically motivated rather than economically. Whether this will have an impact on his Fed presidential candidate qualification remains to be seen," Valve said. However, this will not make the challenges the Fed faces in the near term easier. Internal debate can be very fierce as tariff-related inflationary pressures intensify and labor markets rapidly deteriorate. "Police makers still have serious differences on the pros and cons of further easing policies, which laid the foundation for the fierce votes in the last two meetings of this year," said Samuel Toums, chief U.S. analyst at Panson Macro.