Read on Investopedia: Fed Chair Powell Doesn’t Need a Unanimous Vote to Cut Rates—But He May Want One
Investopedia, September 9, 2024
- The FOMC has 12 voting members, and its votes are often unanimous even when there is disagreement. The last dissent came in 2022, when Kansas City Fed President Esther George opposed a three-quarter-point hike.
- Nationwide’s Kathy Bostjancic said Powell doesn’t need consensus to begin cutting but likely prefers it for the first cut.
- LPL Financial’s Jeffrey Roach said members work toward consensus between meetings, though there are no guarantees.
- Former Labor Department economist Betsey Stevenson said consensus has helped keep the Fed from being politicized.
- Allianz Trade’s Dan North said rallying support for a half-point cut would be difficult and likely draw dissent.
Investopedia: Fed Chair Powell Doesn’t Need a Unanimous Vote to Cut Rates—But He May Want One