The Fed cut rates by 25 bps, but dissenting votes signalled widening divisions within the FOMC
Two members opposed the cut, while Trump’s appointee argued for a deeper 50 bps reduction
Powell says rates are now “neutral,” but inflation is seen reaching 2% only by 2028, raising concerns
Tariffs continue to push inflation higher, even as China maintains a strong trade surplus
Powell’s term ends soon, and a new Trump-appointed chair may test the Fed’s independence
A US-India trade deal could matter more for India’s external stability than short-term Fed rate shifts