MARKETS ON EDGE: Fed turmoil hits Wall Street-inflation fears intensify

分组1 - The Federal Reserve is experiencing internal divisions regarding interest rate policy, with some members advocating for cuts to support a cooling labor market, while others caution that excessive cuts could reignite inflation [2][11][20] - Current market expectations indicate a nearly 90% chance of a rate cut, with a 25 basis point cut anticipated, but the actual impact of the Fed's statements moving forward is uncertain [1][5][6] - The affordability crisis for consumers is exacerbated by high borrowing costs, as credit card and auto loan rates have not decreased in line with Fed rate cuts, leading to increased debt burdens for families [17][18][30] 分组2 - The economy is showing signs of growth, with a projected GDP growth of around 3.5%, largely driven by AI-related capital expenditures, which may mask underlying weaknesses in the broader economy [23][32][34] - The disconnect between reported economic growth and consumer sentiment highlights that those without significant financial assets are not benefiting from the current economic conditions [31][34] - The Fed's decision-making is influenced by the need to address affordability issues, as the benefits of economic growth are not evenly distributed across the population [32][36]