Powell takes control of the Federal Reserve's interest rate decision direction

In recent market attention, the internal voice within the Federal Reserve regarding the direction of monetary policy has become increasingly clear. According to relevant analyses, the core decision-making power of this meeting is actually held by Powell, reflecting his influence on policy decisions as the Chair of the Federal Reserve.

Internal Support Base Has Taken Shape

The internal policy stance within the Federal Reserve has become more unified. Members supporting Powell’s policy direction have already been brewing consensus in advance, creating favorable conditions for advancing policy adjustments. In this internal environment, Powell has more flexible policy options.

Rate Cut Options Still Under Consideration

Given the current economic situation, Powell can push forward with rate cut decisions based on actual conditions. At the same time, he maintains flexibility regarding future policy directions and signals that further rate cuts may be limited if necessary. This balanced policy stance neither overcommits nor leaves no room for market expectation management.

Market interpretation of the Federal Reserve’s next policy direction will largely depend on Powell’s policy guidance at the meeting.