Name: Why are Federal Reserve members split on raising rates? I FT
Uploaded: 2020-03-23T16:22:56.000Z
Duration: 6 min 11 s
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So there is a bias if you're a Fed watcher.

Transition words & phrases

because it gives you something to talk about and something

In July, the Fed offered a 25 basis point cut.

know what's going on with trade uncertainty.

Things look fine, but we're watching very carefully.

On Wednesday they offered another 25 basis point cut,

There's a strange thing happening, particularly

with trade uncertainty where the Fed seems

to be actively talking to people in the business community.

They're telling it that they're delaying purchases

that they published in August that trade uncertainty delays

That could put a drag on economic growth by as much

of a full percentage point over the course of 2020.

But then when you get to the actual projections in the dot

plot, which we got today the median dot said, we're good.

Most economic data continues to be good, pretty much everything

except business investment, except this concern over trade

It's been pretty strong for the entire year

that we've been seeing business investment and manufacturing

So we have further proof that perhaps this is just

a manufacturing recession, something to watch carefully,

There also seems to be some disagreement within the Federal

Esther George, Eric Rosengren, they're both Fed presidents,

said, they thought the Feds should stand pat.

They did that again this time, but then there

Jim Bullard, president of the St. Louis Fed,

said it should have been a 50 basis point cut.

Jim Bullard has been the most prominent voice

arguing for increased concern about trade uncertainty.

So there you have it - you have this idea.

There's one voice that's arguing strongly for it,

but it doesn't seem to be swaying the committee.

The committee itself is divided and waiting to see what else

It's not really a surprise that the committee is so divided.

One thing that Jay Powell said when he gave his policy

that we are in a new era of monetary conditions.

We're in an era of low interest rates, which

he calls the monetary policy challenge of our time.

America has the easiest time of all the other major developed

We seem to have slightly higher interest rates,

Let me just say, on the general point of diverse perspectives,

Sometimes and there have been many of those times

relatively clear it's relatively easy to reach anonymity.

This is a time of difficult judgments, and as you can see,

And as I really do think that's nothing but healthy.

And so I see a benefit in having those diverse perspectives,

It's hard to figure out the effect that that's

It's hard to figure out whether a very clear, invisible

So there is justifiable lack of clarity on what's happening.

Ultimately, they came to a decision this time.

But they seemed to communicate we don't really

As we know, there was a disruption in overnight funding

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Why are Federal Reserve members split on raising rates? I FT

figure

basically

determine

bias