Interest Rates

The absence of a full suite of official economic data has ramped up concern that the Fed won’t get a clear read on how the economy is evolving, increasing the potential for policy mistakes as the Fed’s mandates of price stability and maximum employment are pulling officials in opposite directions.

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Other FOMC members remain concerned about inflation and do not currently support an another interest rate cut in October.

Although inflation remains “somewhat elevated,” FOMC officials agreed to cut interest rates because “downside risks to employment have risen.”

The Federal Reserve is widely expected to reduce interest rates at this week’s meeting, but that won’t necessarily set the U.S. on a smooth glide path to significantly lower rates.

He seems to believe if he “has a majority” of Fed governors, he can pressure them to make federal borrowing much cheaper. That approach would be highly likely to backfire in the long run.