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Fed Chairman Powell is likely trying to get everyone to support at least a 25 basis point rate cut at the meeting later this month. However, due to the recent weakness in the labor market, Powell and others may push for a larger rate cut. Kathy Bostjancic, senior vice president and chief economist at Nationwide, said in an email, "Powell doesn't need consensus at the upcoming September meeting to start cutting rates, but he may be more inclined to do so, especially on the first cut."
Betsey Stevenson, a former Labor Department economist, wrote on social media that "Consensus has always been a way to prevent the Fed from being politicized, and if I had been at the FOMC, I think I would have prioritized Consensus." Dan North, senior economist at Allianz Trade Americas, said of whether Powell would be able to secure consensus for a larger rate cut: "It's going to be difficult. There's going to be a lot of opposition, and that's going to look bad."
Swonk wrote: "Powell is more concerned about the labor market than his colleagues. He wants to achieve a soft landing. The question is, will he push for a 50 basis point rate cut and how much opposition is he willing to accept to achieve this goal."