Core Viewpoint - The Federal Reserve is experiencing internal differences regarding the pace of interest rate cuts, with new member Milan advocating for a rate cut in December due to easing inflation and a moderately cooling labor market [1][3]. Group 1: Interest Rate Policy - Milan believes the current interest rate is slightly above the neutral level, suggesting that monetary conditions may be suppressing economic activity, and he supports a quicker return to a balanced rate to alleviate potential economic pressures [3]. - There is no consensus within the Federal Reserve, as some officials emphasize the need to monitor inflation and oppose premature easing, indicating a shift in discussions from "whether to cut rates" to "how to arrange the pace of cuts" [3][4]. Group 2: External Economic Environment - Milan highlights that uncertainties in trade and tariffs could impact economic expectations, suggesting that changes in external costs or policy expectations may influence corporate planning and market behavior, thereby affecting the applicable interest rate level [3]. - The current market remains focused on U.S. employment and price trends, with recent employment data showing a slowdown in growth but still adding jobs, and wage growth declining, indicating a moderate cooling phase rather than a rapid contraction [3][4]. Group 3: Data-Driven Policy Approach - The Federal Reserve's approach to rate cuts has entered a more data-dependent phase, with increased discussions on the pace and magnitude of changes, reflecting varying data focus among officials [4]. - Future interest rate changes are likely to be more driven by economic data, including macroeconomic indicators, consumer changes, employment trends, and price levels, making market reactions more sensitive to data release timings [4].