'Growing chorus' of support to skip rate cut ahead, says Fed Chair Powell

Core Viewpoint - The discussion highlights differing perspectives within the committee regarding future interest rate cuts, emphasizing that a reduction is not guaranteed and depends on various economic indicators and risks [1][4][6]. Group 1: Interest Rate Decisions - The committee has reduced rates by 150 basis points, bringing them into the range of 3% to 4%, which aligns with many estimates of the neutral rate [2]. - There is a division among committee members on whether to pause further cuts or continue, reflecting differing views on economic conditions and risks [4][6]. - Some members advocate for a wait-and-see approach to assess the real impact of stronger economic growth and potential risks to the labor market [3][6]. Group 2: Economic Indicators - The labor market is considered a more reliable indicator of economic momentum compared to spending data, suggesting that its performance will influence future policy decisions [3]. - There are concerns about inflation risks and employment risks, which contribute to the differing philosophies among committee members regarding monetary policy [5][6]. Group 3: Committee Dynamics - The committee is committed to achieving maximum employment and stable prices, but members have varying forecasts and risk tolerances, leading to disparate views on policy actions [6]. - The recent economic projections and public remarks from Federal Open Market Committee (FOMC) participants indicate a growing sentiment for a cautious approach moving forward [7].