Analysis: Powell still firmly controls the Fed

On September 22, before last week's interest rate meeting, some Wall Street figures anticipated a deeper division within the Fed, but quite the opposite happened. Governors Waller and Bowman, after voting against in the last meeting, chose to align with their colleagues this time, making Trump-appointed Milan the only outsider in an 11 to 1 vote. Former New York Fed President Dudley stated, "Powell remains firmly in control of the Fed, and those officials inclined to keep interest rates unchanged followed the Fed Chair's opinion and agreed to lower rates. Even Trump appointees Bowman and Waller rejected Trump's request for a more significant rate cut. Their actions demonstrate integrity, a commitment to the Fed's mission, and the importance of maintaining Central Bank independence." Susan Hill, head of Federated Hermes' liquidity team, indicated that although pressure from the White House is expected to continue, "at least for now, most people seem to stand behind Powell. I am convinced this explains, at least in part, why he appeared so calm and confident during the press conference." Powell, whose term as Chair ends next May, also seemed to deliver a strong rebuttal to Trump-appointed Milan and the White House in his post-meeting remarks. When asked whether there had been any consideration internally for a 50 basis point cut, Powell replied that there was "not broad support at all." (Jin10)