Fed will have a lot of dissent as labor market remains okay: The Conference Board's Dana Peterson

Economic Outlook - The Federal Reserve is expected to cut interest rates, but there will be significant dissent regarding the adequacy of a 25 basis point cut, with some arguing it is insufficient given ongoing inflation concerns [2][4] - Current inflation remains above the 2% target, and there are worries about the labor market not showing strong declines, indicating a mixed economic outlook [3][9] Fed Independence and Diverging Opinions - There are concerns about the independence of the Federal Reserve, with varying opinions among officials on the appropriate course of action regarding interest rates [4][6] - Divergent views on the economy lead to uncertainty, with some officials advocating for a more aggressive rate cut while others oppose any cuts [6][7] Inflation and Labor Market Dynamics - The last inflation reading showed a decline, but there are fears that higher inflation could return due to tariffs affecting consumers and businesses [8][10] - Wage growth has increased from an average of 1.5% before the pandemic to 2-3% now, influenced by the retirement of baby boomers, which may contribute to persistent inflationary pressures [11]