The federal reserve is unlikely to reduce prices on Wednesday, but this meeting is full of politicization

Given that nothing will happen when it comes to the main policy decisions, this week’s federal reserve meeting is full of Decese.

When the Federal Open Market Committee issues the interest rate decision on Wednesday afternoon, it is certain that the narration is almost like June meetingWith little change in the statement and officials again on any discounts.

However, many great sub -charts will be playing. It is considered:

• Two Federal Conservatives-Crystone, Wald, and Michel Buman-are possible voices “No” to keep the federal funds action closed by 4.25 % -4.5 %. If so, this will be the first time that many conservatives have opposed since late 1993. Reducing. Waller stands alternative to a long stain for the chair Jerome Powell Next year makes his vote more important.
• This will be the first meeting since the president Donald Trump‘s The historical visit to the Federal Reserve Building website And Kerfuffle that erupted on cost excesses there. Central Bank officials use an aggressive public relations campaign to counter the criticism of the White House, and the case will certainly appear during the press conference that Powell after the investigation.
• The Federal Reserve has a lot of wandering when it comes to the economy, including the possibility of no Trump tariff Inflationary effect Many economists are afraid. This makes delaying a reduction rate is difficult to justify, with Trump’s demands to reduce the dramatic policy, making the background more.

Ultimately, the committee is likely to stand, which puts deviations on the side and the decision to cut in September.

“They will not get anything if they dilute, unlike that they will look like they are heading to the president,” said Bill Engech, the former head of the Federal Reserve Affairs, who is now a professor at Yale School for Administration. “So I think their best policy is definitely just looking at data, providing the best judgment, making their policy decision and explaining it as much as it can.”

In the period leading up to the meeting, both of them argued over the pieces, saying mainly that with the tariff passes to inflation is not yet clear and the labor market “on the edge” as described by Waller in A letter less than two weeks agoIt is time to reduce the federal reserve.

Waller said in the letter, entitled “The Certain Call now” with inflation near the target and the risks of upwardness to the limited inflation.

These comments are likely to visit with Trump CNBC poll Among the market and economists experts showed that only 14 % believe that Walir will get the nomination to replace Powell, whose term ended in May 2026. Among the prominent competitors above Walir Treasury Secretary Scott Payette, former ruler Kevin Wagrch and Kevin Haysit, director of the National Economic Council.

Trump Powell called for resignation, and even a threat to launch it before the decline, and blamed the Central Bank leader for FOMC’s rejection of lowering prices. The President said that the Federal Reserve should facilitate help in reducing financing costs on national debt and canceling the housing market at high mortgage rates.

However, Powell is just a single vote on FOMC, and no other members appeared alongside Waller and Bowman to cut this meeting. Some officials have even called for the lack of discounts this year, according to Minutes of the June meeting. I will not present the ruler Adriana Kogler, which reduces the committee’s vote to 11.

“The reason is that the Federal Reserve is not cut off due to Jay Powell,” said Robert Kaplan, former Federal Reserve Chairman in Dallas, in CNBC. “The reason is that the Federal Reserve is not (cut) is … there is no consensus around the table, it is time to reduce, and there are 12 votes and cannot make a unique decision.”

“If there is a Federal Reserve Chair at the present time, I think they will not be cut in July,” he added. “So I think there is more difference here more than it may be reflected in public comments.”

With no update on the summary of economic expectations or the “DOT plot” accompanying the expectations of individual members, investors will be left to roam through the statement and Powell’s statements on the press to obtain evidence about what is happening after that.

Julian Lavarg, chief market expert at Barclays Private Bank and Wealth Management, said that there is still a “strong basic issue” to reduce in September, but this may change depending on data. The June Dot plot indicates this year’s discounts, but also showed a strong division among officials.

“Although the decision of the Federal Reserve is unlikely to surprise it, this meeting should be very interesting,” Lavarg said.